US junk borrowers refinance just $22 billion in Q2 to date, JPM finds

By Matt Tracy

WASHINGTON, May 21 (Reuters) - U.S. junk-rated corporate borrowers have refinanced just $22 billion in high-yield bonds and leveraged loans so far in the second quarter, according to JPMorgan analysts, as heightened market volatility has led many borrowers to hold off refinancing their maturing debt.

Junk issuers' sluggish quarter-to-date refinancing follows an active first quarter which saw $145 billion in refi activity, according to JPMorgan. That comes on the heels of a record $615 billion in junk refis in 2024, the report added.

Just $20 billion of high-yield bonds and loans mature by year-end, which rises to $124 billion in 2026, $291 billion in 2027, $683 billion in 2028, and $647 billion in 2029, JPMorgan analysts wrote.

"That said, an examination of maturities over the next few years reveals a higher necessity for capital market access by lower-quality issuers," wrote Nelson Jantzen, who covers high-yield bonds, leveraged loans and distressed credit at JPMorgan.

Recent market volatility stemming from the Trump administration's ever-changing tariff policies, which in turn have contributed to heightened geopolitical tensions with China and other countries, has led corporate bond spreads, or the cost for companies to borrow, to widen since the start of the year.

Junk bond spreads last stood at 320 basis points, according to the ICE BofA High-Yield Index .MERH0A0. They have recovered from a peak 461 bps reached in the days following President Trump's 'Liberation Day' tariff announcement on April 2, which Trump has since reduced or paused.

Of the junk debt maturing by the end of 2026, leveraged loans are trading comfortably wide of the index, while junk bonds were last trading well inside of it, Jantzen noted.