A substantial volume of high-yield and investment-grade corporate debt is scheduled for refinancing over the next 24 months. Corporate treasurers are recalibrating balance sheets to manage significantly higher interest expense environments.
Deleveraging Strategies
Corporations are prioritizing debt reduction over non-essential capital projects and share buybacks. Chief financial officers are leveraging asset sales and cash reserves to limit reliance on new high-coupon bond issuances.
M&A Slowdown
Elevated borrowing costs have widened valuation gaps between buyers and sellers. Strategic acquisitions are increasingly structured with earn-outs and equity components to minimize reliance on debt-financed transactions.