Default rates are under 1%. Yet about 1 in 9 leveraged loans trades below 90 cents on the dollar. Both are true.
Devin sits down with Kenny Tang, head of U.S. credit research at PitchBook, to explain why. They cover everything from a glossary of terms (BSL, BDC, PIK, cov-lite, LME) to what actually cracked in 2026 after the AI software scare. Plus, why defaults look low when stress is high, what credit LPs should watch, and whether today's lenders know how to run a workout.
Kenny Tang is a former bank workout and S&P recovery ratings guy who's sat on every side of the table.
Check out all of PitchBook's research at pitchbook.com.