The Basis Point

Apr 28, 2026

Recovery Rates are Collapsing

Source: J.P. Morgan, “Default Monitor: High Yield and Leveraged Loan Research,” North America Credit Research, April 1, 2026.

Takeaway: When defaults do happen, lenders are recovering far less than historical norms. The real risk in private credit isn't just whether borrowers default, it's what you get back when they do.

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