Market Views

Expect a More Normalized Level of Defaults

Published on: June 22, 2023

Increased interest rates translate to higher borrowing costs, which could have implications for default rates. In this video, Mike Patterson, a Governing Partner and Head of Direct Lending at HPS, explains why he expects default rates to normalize back to the levels we saw prior to the aggressive monetary policy support, but with idiosyncratic, and not necessarily systemic, defaults.