Corporate debt maturities set to test US borrowers as rates rise
TLT•About $4.3 trillion of U.S. non-financial corporate bonds will mature from 2027 through 2031, as borrowers face higher refinancing costs. Annual maturities are set to rise from about $572 billion in 2027 to roughly $1.03 trillion in 2030.
1. Refinancing wave builds
About $4.3 trillion of U.S. non-financial corporate bonds will mature between 2027 and 2031. Annual maturities rise from about $572 billion in 2027 to roughly $1.03 trillion in 2030, following refinancing that pushed debt into later years.
2. Lower-rated borrowers face more
Higher Treasury yields have lifted refinancing costs, with the 10-year U.S. Treasury yield above 5%, around its highest level since 2007. High-yield maturities rise from about $68.5 billion in 2027 to $314.1 billion in 2029, while investment-grade maturities increase to $512.6 billion from $437 billion. High-yield debt will account for about a third of maturities in 2029, up from 12% in 2027.
3. Technology borrowing adds demand
PIMCO said most investment-grade and high-yield issuers should absorb higher refinancing costs, but the weakest borrowers face a sharper squeeze; coupons on CCC-rated bonds due in 2027 and 2028 could roughly double if refinanced at current index yields. Goldman Sachs expects gross debt issuance by hyperscalers including Amazon, Alphabet, Meta, Microsoft and Oracle to reach $420 billion in 2027, up 60% from estimated 2026 levels.
