Loan maturity wall may be further off than expected, shows research

New research by London-based structured credit software provider Codean shows that the loan maturity “wall” is further off than many expect. The firm looked at the maturities of loans held by a selection of European and US CLOs and found that the biggest hurdle for US loan refinancing does not take place until 2013 and 2014, when more than 60% of maturities take place. European loans do not hit their maturity wall until 2014 and 2015.

This research contrasts with other analysis, which shows an earlier refinancing wall of 2011/2012 for US loans. The difference may reflect the extent to which CLOs have already allowed lenders to extend the maturity of many loans in their portfolios.

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