Strong economic data across the developed world has raised hopes of a better-than-expected macroeconomic environment, ruling out an imminent recession. This has supported credit spreads. The recovery observed in certain stressed/depressed EM credit situations also contributed to the improvement in credit spreads. The key event of the month focused on distressed credit, as economies such as Zambia, Pakistan and Sri Lanka successfully restructured their debts. This development has improved some distressed situations.