First CLO Default in Europe Since 2008 Crisis Raises Market Alarms

London, Saturday, 20 June 2026.
A Bain Capital-managed CLO in Europe has defaulted on its riskiest tranche for the first time since post-2008 reforms, with investors losing over a third of their capital. This unprecedented failure signals deepening stress in leveraged loans, as rising interest rates and volatile markets erode asset quality in older structured finance deals.