Key facts
- US corporate debt maturities will total $4.3 trillion between 2027 and 2031.
- Annual maturities are expected to rise from $572 billion in 2027 to $1.03 trillion in 2030.
- Global debt has surpassed $365 trillion, according to the Institute of International Finance.
- The 10-year US Treasury yield is above 5%, near its highest level since 2007.
- High-yield bond maturities are set to jump from $68.5 billion in 2027 to $314.1 billion in 2029.
- Goldman Sachs forecasts $420 billion in debt issuance by major tech companies in 2027.
A significant volume of US corporate debt is set to mature in the coming years, posing a refinancing challenge for companies that borrowed at historically low interest rates during the pandemic. Approximately $4.3 trillion in non-financial corporate bonds will mature between 2027 and 2031, with annual maturities rising sharply from $572 billion in 2027 to an estimated $1.03 trillion in 2030.
This comes as global debt has surpassed a record $365 trillion, according to the Institute of International Finance, and higher Treasury yields have increased the cost of borrowing. The benchmark 10-year US Treasury yield is currently above 5%, nearing levels not seen since 2007.
Companies will face higher refinancing costs, potentially pressuring earnings and cash flow. Lower-rated borrowers are expected to bear the brunt of this burden. High-yield bond maturities are projected to increase from $68.5 billion in 2027 to $314.1 billion in 2029, making up a larger portion of total maturities. While PIMCO believes most investment-grade and high-yield issuers can manage, the weakest borrowers may face significant pressure, with coupons on some CCC-rated bonds potentially doubling if refinanced at current yields.
The refinancing wave will coincide with substantial borrowing by major technology companies to fund artificial intelligence infrastructure. Goldman Sachs anticipates that hyperscalers like Amazon, Alphabet, Meta, Microsoft, and Oracle will issue $420 billion in gross debt in 2027, a 60% increase from estimated 2026 levels.