Default and Recovery Rates in European high-yield

European high-yield market review of 2025:

  • The overall loss rate (1-Recovery) improved to 1.2%
  • The overall recovery rate rose to 62%, surpassing the long-term median’s 41%
  • The overall notional default rate was steady at 3.2%
  • Financial Services were the hardest hit, with a 17% default rate due to weak debt servicing

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