KBRA Direct Lending Deals: News & Analysis – 9/8/2025

Defaults: Roughly 40% of restructured HY issuers were in trouble again within 24 months

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Distressed debt exchanges (DDEs), the alternative medicine to bankruptcy when it comes to treating problem credits, have long been criticized as temporary band-aids that lead to another restructuring or Chapter 11 anyway. Investors aren’t wrong.