Ladd Dental Group

 The private credit market is beginning to show real signs of stress — and the implications for the dental profession could be significant. According to Fitch Ratings, U.S. private credit default rates climbed to a record 9.2% in 2025, with the majority of defaults occurring among companies generating $25 million or less in EBITDA.  J.P. Morgan recently modeled that with a 10% default rate and only 20–30% recovery values, total returns for leveraged private credit portfolios can turn negative. Historically, severe stress scenarios look something like this: Scenario Approximate Impact 2–3% defaults     Normal/private credit performs well 5–6% defaults     Stress begins, weaker funds struggle 8–10% defaults     Significant NAV pressure and restructurings 12–15% defaults     Potential wipeout risk for heavily leveraged or poorly underwritten funds Some analysts and UBS stress scenarios have warned that a true recession or AI-driven earnin...