Goldman Sachs Private Credit reports non-accrual rates are remarkably low (1-2%) and portfolio companies are resilient. The market fears a credit crunch, but large alternative asset managers (Alts) focus on cash-flow-generative, recession-resistant sectors. As banks retreat or face regulation, these private giants capture market share and maintain high yields. Long. The "fear" of private credit blowing up is disconnected from the "reality" of their current performance. A deep, prolonged recession eventually hits EBITDA, causing defaults to spike.