Blackstone’s Secured Lending Fund (BXSL) saw nonperforming loans reach a five-year high in the second quarter of 2026. A Wall Street Journal analysis published August 10 revealed similar trends at major managers including Ares Management and Blue Owl Capital.
The broader private credit default rate climbed to a record 6% in the second quarter, according to Fitch Ratings. Despite the industry trend, BXSL reported healthy earnings on August 6 and stated that no new assets entered non-accrual status during the quarter.
Rising defaults create a tense environment as record capital continues to flow into the asset class. These developments have raised investor concerns regarding the underlying financial health of borrowers supporting these funds.