CCRC Bond Defaults Are Running Below Historical Averages, Ziegler Study Finds
Ziegler Credit Surveillance’s 2026 study of not-for-profit CCRCs with public-market bond debt since 1990 offers a cautiously reassuring financial update. The study counted one new payment default early in 2025 and none in 2026 at the time of its April release. It excludes technical covenant breaches, such as coverage or liquidity violations, so “default” here means a missed bond payment—not every sign of financial stress.
Across the full study period, 11.8% of 786 borrowers defaulted at some point, but most continued operating through a restructuring or sale. After recoveries, the study’s net default rate was 2.8%; average post-default recovery was about 63 cents per dollar. Ziegler says defaults may remain low for at least two years absent another extreme event, but residents should remember that a low bond-default count does not eliminate operating, occupancy, or contract-refund risks. What financial information would help residents feel better informed about their community’s long-term stability?
Read the full article here: https://www.ziegler.com/what-we-do/investment-banking/senior-living/zcs-special-report-2026-ccrc-default-study/