Global Strategy June Default Report

The report highlights a stable month for global defaults in June 2026, with European markets showing strength while US credit markets prepare for potential spread widening in Q4.

Key Takeaways

• 1.Global default counts were down month-over-month and relatively flat year-over-year, with Europe showing marked improvement.
• 2.US defaults remain concentrated in consumer cyclical and capital goods sectors, with AI-driven disruption expected to impact tech later in 2026.
• 3.Recovery rates for US Leveraged Loans and High Yield bonds rebounded in Q2, normalizing toward long-run averages.

Table of Contents

• 1. A month of stability, with some signs of green shoots
• 2. US HY records 1 default in June after 1 in May
• 3. US LL saw 2 defaults in June following 7 in May
• 4. EU HY and LL had no defaults in June
• US High Yield
• US Leveraged Loans
• European High Yield
• European Leveraged Loans
• Valuation Method and Risk Statement
• Required Disclosures
• UBS Global Research Disclaimer

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