US junk bond maturity wall not as high as feared


S&P Global research shows non-financial firms globally last year reduced 2024 maturities by 44%. — Reuters

WHAT looked from a distance like an unscalable debt ‘maturity wall’ for ‘junk’-rated US companies next year might be easier to jump after all.

With borrowing costs elevated by the Federal Reserve’s (Fed) most aggressive interest rate-hiking cycle in 40 years and expected to stay high, there are fears that firms with the lowest credit ratings will struggle to refinance, potentially spreading a wave of defaults and financial distress over the wider economy.

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