Rising default rates indicate potential opportunities in distressed debt, with Moody’s reporting a leveraged loan default rate of 7.6% in 2024, the highest since 2020. Private equity (PE)-backed issuers contributed significantly to this trend, with many engaging in distressed exchanges as a restructuring strategy. Despite mixed fundraising results for PE distressed strategies, optimism persists around climate funds, with many managers expecting improved exit environments. Additionally, Taiwanese insurers like Nan Shan Life are selling private equity portfolios ahead of new regulatory requirements. Overall, the market shows signs of distress, but also potential for investment opportunities.