The share of distressed high yield debt (debt trading wide of 1,000 bps) is above 5% as of mid-June (white dotted line) and climbing steadily amid uneven macroeconomic data and rising recession concerns. The climb, however, remains concentrated with consumer staples (blue line) among the biggest propellants.

Distressed cycles typically peak north of 15% as a share of total high yield market value, implying scope for material continued widening should recession risks intensify.