Repeat default activity remains elevated in 2026, with ten of the twenty-nine default actions year to date involving repeat offenders (34%). This marks the fourth consecutive year where repeaters account for at least 30% of total distress events, following a record 41% in FY25. Since 2008, 20% of all default actions (233 of 1’165) have been repeaters, highlighting that distressed exchanges often defer rather than resolve underlying capital structure stress.
Of the 351 distressed exchanges executed since 2008, 42% (146 transactions) have re-entered the market with a subsequent default action, taking an average of 1.9 years (1.0-year median) to recur. Across the 2010–2024 post-crisis cohort, this repeat rate climbs to 48%. Given recent elevated volumes of out-of-court restructurings, serial default activity will likely persist, driving ongoing performance dispersion across leveraged loan portfolios.
