Market Views
Expectations for Default Rates and Dispersion in a Recessionary Environment
Published on: May 29, 2025
Default rates are expected to rise and dispersion is likely to increase in public and private credit markets should the US experience a recession, according to Mike Patterson, an HPS Governing Partner and Co-Head of Private Credit, and Purnima Puri, an HPS Governing Partner and Head of Liquid Credit. In this video with Colbert Cannon, a Managing Director at HPS, they discuss how they are managing recessionary risks.