EMEA Special Situations: Stressed corporates make up ~40% of LFI Special Situations universe in May, but dealflow continues to fall - LFI data
Sandrine Bradley: Senior Reporter
04 June 2026
- How rising stressed exposures are reshaping the EMEA special situations landscape for investors.
- What declining dealflow signals about the lag between corporate stress and restructuring activity.
- Why shifting classifications from stressed to distressed are changing credit risk dynamics.
- How debt composition across leveraged loans and bonds reflects evolving market pressures.
- Where sector concentration particularly in manufacturing may influence future stress developments.
Executive Summary
Stressed corporates represent a significant share of the special situations universe. This reflects ongoing pressure across European credit markets.
Deal activity has not kept pace with rising corporate stress levels. Consequently, restructuring volumes remain subdued despite broader challenges.
Transitions between stressed and distressed categories highlight changing credit conditions. These movements signal evolving risks across issuers and sectors.
Debt composition shows a strong presence of leveraged loans alongside high yield bonds. However, distribution differs across stress categories and market segments.
Sector trends indicate growing concentration in manufacturing and related industries. Overall, market developments continue to shape the special situations landscape.
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