HLI Flags Rising Stress Among Smaller Private-Credit Borrowers
Houlihan Lokey, Inc. (HLI) reports rising stress in private-credit borrowers, particularly smaller ones. In Q2 2026, borrowers with less than $100M EBITDA had default rates of 3% by loan value and 3.6% by borrower count. Healthcare and consumer sectors showed notable stress, while software had low default rates. HLI's shares have fallen 22% YTD, and it carries a Zacks Rank #5 (Strong Sell).


