Bankruptcy filings by Hawker Beachcraft and Bicent sent the loan default rate to a 9-month high of 56 bps in April from 21 bps in March.

FORBES: May 2012, US Leveraged Loan Market Trends and Analysis

Despite the ongoing EBITDA expansion, the loan default rate has ticked up to 0.56% this year following bankruptcy filings and out-of-court reorganizations by Coach America , Tensar, Hawker Beechcraft, and Bicent, from a minuscule 0.21% at year-end.

FORBES: Connect

But two other states whose filings were examined by the committee, Rhode Island and Maryland, signaled premium rate increases.

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The more Chapter 9 filings, the less money Calpers receives, and the more strain on the fictional expected rate of return until the boiler bursts.

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