How the economy would weather private-credit defaults rising to financial crisis-like levels

How the economy would weather private-credit defaults rising to financial crisis-like levelsThe private-credit sector has been attracting a lot of attention recently – most of it unwelcome. A new report from Goldman Sachs, though, reassures investors that even in the event of a default rate of 10% — comparable to that of the global financial crisis in 2008-09 — large macroeconomic spillovers are unlikely. Its research finds a drag on GDP of only 20-50 basis points in this worst-case scenario. About the AuthorJules Rimmer is a markets reporter in London.Rimmer spent more than 30 years as a trader and stockbroker in financial markets, starting at Salomon Brothers in the Liar's Poker era, taking in ING Barings, Jefferies and ending it in emerging markets at Investec. He hung up his headset and pivoted to journalism in 2021.A Dow Jones CompanyCopyright © 2026 MarketWatch, Inc. All rights reserved.