US companies are expected to face higher refinancing costs amid rising interest rates. Funding raised during the COVID-19 pandemic is reaching maturity in rapid succession.
An analysis indicates that maturities of bonds issued by companies in the non-financial sector are concentrated between 2027 and 2031. This may require companies to carefully assess refinancing opportunities and terms as interest-rate conditions change.
Refinancing costs are expected to rise in earnest, particularly for US companies, and changes in financing terms during a period of rising interest rates may affect corporate financial management.
There is a view that global debt outstanding is swelling, as suggested by an analysis based on data from the Institute of International Finance (IIF).