Risk Appetite Eases $1.6 Trillion Maturity Wall
- Corporates are succeeding in pushing out wave of junk debt
- Morgan Stanley revises spread targets to reflect resilience
Photographer: Sascha Kilmer/Moment/Getty Images
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As fears of a severe US recession recede, investors flush with cash are looking to put money to work in junk assets. Companies with upcoming maturities are rushing to take advantage.
Anemic issuance means demand far exceeds supply in high-yield markets. That’s paved the way for borrowers to create a little more wiggle room via refinancing and amend-and-extend transactions ahead of a wall of more than $1.6 trillion of junk corporate debt that’s due for repayment through 2029.