• PitchBook introduced PitchBook LCD Default Predictor, a monthly model forecasting aggregate default rate for Morningstar LSTA US Leveraged Loan Index over next six months.
• Model uses regression analysis combining real-time leveraged loan pricing signals with credit ratings to estimate market default risk.
• Inputs include each loan’s price level, price momentum, relative trading versus broader market, credit rating, rating changes.
• Output aggregates loan-level six-month default probabilities into a single forward-looking default-rate estimate.
• Tool aims to give leveraged loan investors earlier warning than backward-looking default-rate measures, supporting proactive portfolio and risk positioning.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Morningstar Inc. published the original content used to generate this news brief via Business Wire (Ref. ID: 20260423280218) on April 23, 2026, and is solely responsible for the information contained therein.