Since 2010, deleveraging and extension strategies eliminated 94 percent of the leveraged loans that had been scheduled to mature in 2014, according to a Hamilton Lane report.
Just $11 billion of leveraged loans set to mature in 2014 remained as of September, according the report, which cites S&P/LCD data. The report was included in Public Employee Retirement System of Idaho meeting materials made available to sister publication Private Equity International.
The outlook for 2015 loans is also strong, with only $9 billion still scheduled to mature.
The maturity wall begins to escalate from 2016 onward, with $51 billion scheduled for 2016, $124 billion for 2017, $136 billion for 2018 and $152 billion for 2019. The total maturity wall stands at $488 billion as of September, according to the report.
Investor demand for yield and low interest rates propelled the leveraged loan market to new heights in 2012 and 2013. Those market conditions proved favourable to companies in need of refinancing or deleveraging, and many were able to amend and extend their debt loads.