Leveraged loan default rate dips further to 0.87%; distress ratio eases

Morningstar LSTA US Leveraged Loan Index (LLI) default rates remained low in August, with the payment default rate by amount at 0.87%, down six basis points from July, and the rate by issuer count at 1.17%, down eight basis points. Two companies, Anastasia Beverly Hills and City Brewing Company, LLC, exited the index. Distress ratio eased by 39 basis points to 6.50% as bids improved broadly.