Brick by brick

13 April 2010 By Agnes Crane

Nearly $830 billion of risky U.S. dollar corporate debt comes due between 2012 and 2014. At first sight that casts a long shadow over credit markets. But borrowers are already tweaking their obligations. By the time 2012 comes around, the wall will be much less of a barrier.

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Nearly $830 billion of dollardenominated highyield bonds and leveraged loans will mature between 2012 and 2014, JPMorgan estimates. During that period, 77 percent of the institutional leveraged loan market will need to be refinanced.

Since 2008, the volume of loans due to mature between 2012 and 2015 has fallen by $100 billion, according to Credit Suisse.

Cablevision Systems sold $1.25 billion of eight and tenyear junk bonds on April 12. The proceeds will be used to refinance existing debt that was due to mature in 2012. The company's subsidiary, CSC Holdings, extended the maturity of $3 billion of debt to 20152016 from 20122013.

In the first quarter of this year, 97 percent of the $70 billion of junk bonds sold will mature in 2015 or later, according to Fitch Ratings. Last year, approximately 40 percent of highyield bond sales were used to refinance leveraged loans, according to Fitch.

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