Debt Wall Subsides as Fed Eases Financing Fear: Credit Markets
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The wall of bonds and loans maturing in the next four years has been slashed by 34 percent to $756 billion as the threat eases that a wave of junk-rated debt coming due will cause a surge in defaults.
Six Flags Entertainment Corp., the theme-park operator that exited bankruptcy in May, met lenders this week to raise $950 million of loans and El Paso Pipeline Partners LP sold $750 million of notes, both to refinance borrowings, according to data compiled by Bloomberg. Since the start of last year, U.S. companies have cut the amount of debt due through 2014 by $393 billion, according to JPMorgan Chase & Co.