Junk Borrowers Get Breathing Room From ‘Maturity Wall’
- High-yield companies face low maturities for next two years
- During the pandemic, corporations refinanced debt coming due
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Money managers rattled over the potential for Federal Reserve rate hikes to spur an economic downturn and hit junk bonds can find solace in at least one credit metric: Most debt isn’t maturing for years.
US dollar company junk bonds coming due by the end of 2024 represent only about 8% of outstanding notes, according to data compiled by Bloomberg. The peak year for maturities in that market isn’t until 2029, with euro-denominated debt peaking in 2026.