3rd Quarter 2021 Chapter 11, Healthcare and Real Estate Distress Indices

In the third quarter of 2021, overall Chapter 11 distress continued to decline sharply on both a quarterly and year-over-year basis, falling well below historical benchmark levels. Real estate distress edged down slightly from the prior quarter and remained significantly lower than both year-ago and long-term benchmark levels, despite an increase in filing share. Health care services distress rose modestly from the prior quarter but remained below benchmark levels for a second consecutive quarter, reflecting a continued normalization following the sector’s prior period of elevated distress.