Default Monitor

Research evidence excerpt

Default Monitor

J P M O R G A N North America Credit Research

01 July 2026

Default activity surged in June, with the HY default rate

rising to a high since Jan-24 and above the loan default

rate for the first time since Dec-22

• Default activity increased in June, with the number of default actions North America Corporate Credit -

matching an 8-month high and total volume affected rising to an 18-month Distressed, High Yield and

high. Most notably, Dish DBS filed Chapter 11, affecting $9.75bn in HY Leveraged Loans Strategy

bonds, which is the second largest default post-pandemic, and raised Nelson Jantzen, CFA AC

the HY bond default rate to a high since Jan-24 . Specifically, there were (1-212) 270-1169

two payment defaults in June totaling $10.0bn in bonds and loans and four nelson.r.jantzen@jpmorgan.com

J.P. Morgan Securities LLC

distressed exchange/LMEs totaling $3.1bn—the combined six default/

Tony Linares

LME transactions totaling $13.1bn is the largest monthly total since

(1-212) 270-3285

Dec-24. In 2Q, a total of $18.0bn was affected by defaults/LMEs, which tony.linares@jpmorgan.com

was up +20% q/q and slightly below the average quarterly volume over the J.P. Morgan Securities LLC

past 14qtrs of $19.4bn. And across the first half of the year, there have been Nimai Rathi

a combined 27 default actions totaling $33.1bn, which is outpacing the (91-22) 6157 5898

first half of last year by +3%—payment default volume ytd is +99% nimai.rathi@jpmchase.com

higher y/y ($22.1bn vs $11.1bn), while distressed exchange volume is J.P. Morgan India Private Limited

down -43% versus 1H25 ($11.0bn vs $19.2bn). Josh M Friedman

(1-212) 834-4674

• Including distressed exchanges, the par-weighted US HY bond and LL josh.friedman@jpmchase.com