{"id":692201,"date":"2010-03-15T21:01:00","date_gmt":"2010-03-16T01:01:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/henry-blodget-now-everyones-freaking-out-about-a-huge-junk-bond-refinancing-cliff-in-2012-2010-3"},"modified":"2010-03-15T21:01:00","modified_gmt":"2010-03-16T01:01:00","slug":"now-everyones-freaking-out-about-a-huge-junk-bond-refinancing-cliff-in-2012","status":"publish","type":"post","link":"https:\/\/mereja.com\/index\/692201","title":{"rendered":"Now Everyone’s Freaking Out About A Huge Junk-Bond Refinancing “Cliff” In 2012"},"content":{"rendered":"

\"tidal<\/p>\n

The new worry, courtesy of the New York Times, is that we’re going to be killed by a huge junk-bond refinancing wave starting in 2012, when all those awful private-equity deals that topped the market start coming due.<\/p>\n

2012 seems like a ways away, though, and the entire refinancing total over the following three years–$700 billion–is less than the TARP (ignoring the additional $2 trillion the US government will need).  Martin Fridson, for one, thinks companies have plenty of time to refinance between now and then.<\/p>\n

But we suppose if there’s suddenly nothing else to worry about, this is as good an obsession as any.<\/p>\n

Nelson Schwartz, NYT: <\/a><\/p>\n

2012 also is the beginning of a three-year period in which more than $700 billion in risky, high-yield corporate debt begins to come due, an extraordinary surge that some analysts fear could create a glut in the debt markets.<\/p>\n

With huge bills about to hit corporations and the federal government around the same time, the worry is that some companies will have trouble getting new loans, spurring defaults and a wave of bankruptcies.<\/p>\n

The United States government alone will need to borrow nearly $2 trillion in 2012, to bridge the projected budget deficit for that year and to refinance existing debt.<\/p>\n

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