Junk bond and leveraged loan issuers extend maturities, reminiscent of post-2008 “extend and pretend” strategy.

Junk bond and leveraged loan issuers have cut ttheir 2024-2026 maturity wall by 40% from a year ago, according to BOA estimates.

"This episode represents one of the most aggressive instances of maturity extension in the history of leveraged finance." pic.twitter.com/HFuzx9GpjO

— Tracy Alloway (@tracyalloway) March 22, 2024

Back in the days after the 2008 financial crisis we used to talk a lot about “extend and pretend,” or the idea that banks and mortgage servicers were modifying home loans to keep them afloat.

https://www.bloomberg.com/news/newsletters/2023-06-16/it-s-the-return-of-extend-and-pretend?sref=frV97TwV

More companies have defaulted on their debt in 2024 than in any start to the year since the global financial crisis, per FT: pic.twitter.com/PIiZSDzuV6

— unusual_whales (@unusual_whales) March 22, 2024

Troubled NYCB is not another Silicon Valley Bank. It’s worse.

https://www.marketwatch.com/story/troubled-nycb-is-not-another-silicon-valley-bank-its-worse-23e201a5