2024 is the year of the dragon, symbolising power, strength, and wisdom.

You could say that similar qualities are being reflected in the European sub-investment grade market, with borrowers taking advantage of stronger market conditions to break down maturity walls.

Whether that be through refinancings or A&Es, proceeds over the past year have mainly been directed towards dealing with maturities.

In fact, approximately 58% of leveraged loan proceeds and 79% of high yield bond proceeds have been allocated to refinancings year-to-date — a significantly higher share than in previous years.

This positions the market more comfortably compared to this time last year (see our report here), with €82bn (equiv.) in bonds held by European borrowers maturing in 2026, decreasing to €67bn in 2027.

In the leverage loan universe a similar story can be told, with maturities becoming more pronounced in 2028 — evidence of the glut of seven-year paper issued in 2021. According to 9fin data, only €25bn is expected to mature over the next two years, which leads Barclays research to expect refinancing volumes of just €15bn in 2025.

“Right now, there is hardly anything left in the [loan] maturity wall for 2026 and 2027, only the problematic credits are left over,” said a sellsider. 9fin bond and loan screeners make it easier to discover these borrowers.