Lighthouse Canton says global credit separates as CCC spreads widen to 1,049 bp

• Lighthouse Canton flagged widening credit dispersion, with index pricing benign while stress concentrates in low-quality, thinly disclosed borrowers.
• High-yield splits sharply: BB spreads near 152bp versus CCC near 1,049bp, up 243bp over 12 months.
• Defaults look lower, but losses are rising; distressed exchanges are 44% of defaults, first-lien recoveries fell to 43% on 2025 vintages.
• Private credit shows a turned cycle; Fitch’s default rate hit 6.1%, driven largely by interest deferrals rather than missed payments.
• Strategy tilts to quality carry and duration, selling high-yield index beta, avoiding CCC tail unless underwritten name by name.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Lighthouse Canton Pte Ltd published the original content used to generate this news brief on September 03, 2026, and is solely responsible for the information contained therein.