Post by mnfish on Mar 7, 2023 12:29:00 GMT
Interesting note from Wells on why HY bonds have not yet seen the much-anticipated stress due to rising rates. Mostly due to the lack of near-term debt maturities. In 2023, only $60B will mature, 2024 is $114B and by 2025 that grows to $212B. Most companies try to refinance 12-18 mos prior to maturity so expect some stress to show up soon. BB rated will refinance at the highest rates in over a decade and B rated and lower may struggle to find rates that are affordable at all.