The left chart shows high yield default (x-axis) and recovery rates (y-axis). As default rates increase, the recovery rate, how many cents on the dollar the bond is worth 30 days after the default, decreases. In fact, right now, recovery rates are at some of the lowest in history. This could, however, present an opportunity for private credit strategies to buy up debt in which the recovery rates may eventually improve but the current holders do not want to wait. The right chart shows corporate debt recovery rates, which are well below long-term averages across the credit spectrum, meaning when challenges arise, investors may be able to get back much less than they expected after a default.