Private credit funds are seeing senior loan writedowns accelerate dramatically. According to MSCI data, the rate has tripled since 2022—a sharp reversal from the easier credit conditions that dominated earlier in the decade. What's driving this? Rising default rates as borrowers struggle with higher interest rates and tighter cash flows. This matters beyond traditional finance: it signals broader credit stress that can ripple through both traditional markets and digital asset valuations, especially given how interconnected modern capital flows have become. The trend reflects tighter lending standards and increased scrutiny of credit quality across the board.