Distressed Debt Dilemma: The Quiet Storm Brewing in 2026 The US economy appears robust, with a strong bull market and vibrant growth.
However, beneath this surface lies a worrying trend: distressed debt is gaining momentum in the leveraged loan index. This sector specific phenomenon often precedes broader economic downturns.
Distressed debt trading under 80 cents on the dollar is concentrated in software related sectors, with nearly half of such debt falling into this category.