HALISTER1: HY Refunding Eases as Issuance Offsets Maturities: Moody’s

HY Refunding Eases as Issuance Offsets Maturities: Moody’s

(Bloomberg) -- Moody’s 3-Year Refunding Index "stabilizing" as record high level of junk-bond maturities in April is offset by substantial increase in issuance, analyst Tiina Siilaberg writes in report.
  • $68b of high-yield debt issued in first 4 months of 2017, 44% increase over previous year
  • Refinancing risk still relatively high at 3.4x at end of April versus long-term average of 6.4x
  • 1- year refunding risk at 6.9x versus long-term average of 11.9x due to fast increase in maturities entering 1-year mark without issuers actively refinancing such debt
  • Among highly levered companies, telecom/media/tech sector has largest share of upcoming maturities with $66b
To contact the reporter on this story: Molly Smith in New York at msmith604@bloomberg.net To contact the editors responsible for this story: Nikolaj Gammeltoft at ngammeltoft@bloomberg.net Kenneth Pringle

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Tiina Siilaberg (Moody's Corp)

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