Leveraged Loan Default Rate Ticked Up to 5.2% in July: Fitch

The leveraged loan default rate increased to 5.2% in July from 5.1% in June on a trailing 12-month basis, according to a Fitch Ratings report.

• The high-yield bond default rate declined to 3% in July from 3.1% the month prior on a trailing-12-month basis
• Distressed debt exchanges made up most leveraged loan defaults from July 2024 through last month, but Chapter 11 bankruptcies outnumbered distressed debt exchanges in July
  • Del Monte Foods, Maverick Gaming and LifeScan Global Corp. filed for bankruptcy last month, totaling about $2 billion in defaults
• There were no defaults tied to high-yield bonds in ...