Continued Compression in Distressed Ratios

  • Risk sentiment rose in May as the Iran ceasefire reduced geopolitical risk premium
  • Stressed securities dropped to 3% of high-yield
  • Distressed securities dropped to 2% high-yield
  • Distressed spreads tightened by 47 bps
  • 2026 distressed default rate is projected <3%, including Liability Management Exercises

Read in-depth insights in our Fixed Income Credit Markets – May 2026