Distressed exchanges, a way for companies to restructure outside of court instead of in traditional bankruptcy, accounted for two-thirds of global defaults in July and over half of defaults this year, hitting the highest level since the financial crisis, according to S&P Global Ratings. (The Logic) 

Talking point: Distressed exchanges surged in popularity in 2008 as companies tried to avoid bankruptcy court by renegotiating contracts, giving creditors new equity, debt or cash, and moving the debt holder up in the payment priority queue. The uptick in global distressed exchanges may be a result of companies that increased leverage levels during periods of low interest rates and became comfortable with high debt levels, S&P said. Meanwhile, July’s overall corporate defaults were led by consumer and media companies as shoppers tightened purse strings. Avison Young (Canada), Baffinland Iron Mines and Xplore were the Canadian companies in this year’s tally of 87 global corporate defaults so far, down from 91 this time last year. Only Baffinland defaulted as a distressed exchange.