Monday, September 27, 2010

2010 - 2018 High Yield Maturity Schedule

This is a great chart from Knight Libertas highlighting the maturity schedule for high yield and leveraged loans over the next 8 years. While 2010 and 2011 looks manageable ($110bn due through 2011), maturities start to ramp up thereafter with $147bn due in 2012, $245bn due in 2013, and a staggering $405bn due in 2014. As demonstrated in the chart, the lion’s share of the 2014 maturities are comprised of leveraged loans used to finance the wave of borrowing undertaken by PE firms in the 2006 and 2007 LBO wave. While the massive inflow of capital into credit could continue for sometime, I suspect we will hear more and more about this “maturity wall” as late 2012/early 2013 approaches.

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