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Partners in Building Wealth

March 2010

Something Else to Worry About? Watch High Yield Bond Maturities

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The New York Times says high yield bonds will be maturing in record amounts over the next four years. Refinancing these bonds will cause problems for lower quality companies that took advantage of low interest rates. Will this cause another round of defaults and corporate bankruptcies? In 2012 $155 billion of higher risk bonds will come due and then in 2013 and 2014 another $ 558 billion will mature. This will happen at the same time the Government borrows record sums and interest rates are higher.