The long-term average recovery on first-lien corporate debt in Europe remained broadly stable between 2003 and 2022, at 72.8%. The average recovery for 2022 instruments was slightly lower, driven by a couple of company-specific/fraud-driven defaults that had very low recoveries. The media, entertainment, and leisure sector had most defaults, followed by the retail sector in the past two years. However, the media, entertainment, and leisure sector had strong recoveries due to the debts' priority status in the structure.