372 large US firms filed for bankruptcy in H1 2026, yet CDX North American High Yield spreads tightened to 304 basis points.
A record 372 large US companies sought bankruptcy protection in the first half of 2026, the highest first-half total since 2010. Despite the surge, the bond market remained resilient, with distressed-debt investors viewing filings as opportunities rather than risks.
The five-year CDX North American High Yield index spread narrowed to 304 basis points by June’s end, down from 406 basis points in March. The tightening occurred amid geopolitical tensions and concerns over AI-driven disruptions in software sectors, which had briefly unsettled markets earlier in the year.
Investors grew more comfortable lending to lower-rated firms in Q2, even as bankruptcy filings climbed. Private capital flows into distressed assets accelerated, signaling confidence in credit conditions despite rising corporate defaults.