Mid-market enterprises face challenging refinancing conditions over the next 18 months as low-interest debt issued during 2020-2021 reaches maturity.
Cost of Capital Shift
Average corporate bond yields remain significantly higher than initial coupon rates, threatening net profit margins and restricting discretionary capital expenditures.
Deleveraging Strategies
Executive boards are responding by delaying non-essential M&A activity, prioritizing balance sheet deleveraging, and issuing structured equity-linked instruments.