3rd Quarter 2020 Chapter 11, Healthcare and Real Estate Distress Indices

In the third quarter of 2020, overall Chapter 11 distress continued to rise sharply on both a quarterly and year-over-year basis, moving closer to historical benchmark levels. Real estate distress declined modestly from the prior quarter but remained higher than a year earlier, while continuing to track well below long-term benchmarks. Health care services distress eased slightly from the prior quarter but remained substantially elevated relative to historical norms, extending a multi-year trend of significantly higher distress compared to other sectors.