Mid-market corporations are encountering severe refinancing hurdles as debt issued during historic rate lows reaches maturity. Interest coverage ratios across mid-cap indices have declined for three consecutive quarters.
Capital Structure Adjustments
Chief Financial Officers are increasingly turning to private credit facilities and hybrid equity structures to cover short-term maturities, accepting higher costs to avoid public market dilution.
Strategic Realignment
Non-core asset divestitures are accelerating as companies seek to deleverage balance sheets and secure operational cash flows ahead of macroeconomic volatility.