The U.S. distress ratio decreased to 14.2% in August, declining for the sixth consecutive month, and was last lower in July 2015 (13.2%). Despite the shrinking distress ratio, the default rate, a lagging indicator of distress, increased to 4.32% as of June 30, 2016. In this CreditMatters TV segment, Gregg Moskowitz, Associate Director of Global Fixed Income Research, discusses the key points.