Taps Coogan – January 28th, 2023

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As we’ve noted before, while the level of outstanding corporate debt has rocketed higher since 2020, the short term outlook for corporate debt appears fairly sanguine. Via Daniel Lacalle:

While there are notable exceptions, companies used the low interest rates of the past couple years to refinance and extend their debt maturities. The big maturity wall for high yield and leveraged loans markets now appears to be all the way out to 2028. Maturity profiles and interest coverage will presumably deteriorate between now and then as rollovers get done at higher rates, but this doesn’t appear to be a 2023 story.