This suggests a higher likelihood of defaults if the growth of the U.S. economy decelerates beyond predictions.
The organization analyzed over 335,000 various financial tools, such as bonds, loans, and revolving credit lines, and projected that $2.02 trillion of rated debt will need to be repaid between 2025 and 2029. This represents an increase of 8.2% compared to the $1.87 trillion that will require refinancing between 2024 and 2028.
Nevertheless, if economic growth slows down as anticipated, market conditions will still be favorable. It is anticipated that interest rates will keep dropping, leading investors to become more interested in credit markets.
source: bloomberg.com
The organization analyzed over 335,000 various financial tools, such as bonds, loans, and revolving credit lines, and projected that $2.02 trillion of rated debt will need to be repaid between 2025 and 2029. This represents an increase of 8.2% compared to the $1.87 trillion that will require refinancing between 2024 and 2028.
Nevertheless, if economic growth slows down as anticipated, market conditions will still be favorable. It is anticipated that interest rates will keep dropping, leading investors to become more interested in credit markets.
source: bloomberg.com
