BSL Market Conditions and the 2028 Maturity Wall

Ben Thompson compares current market conditions to prior periods of volatility, arguing that financing conditions remain favorable for quality credits. He notes that high yield fixed-rate markets are extremely liquid with tight pricing, while the loan market remains selective but open. However, he flags a significant concern: approximately 60 billion euros of European leveraged loans mature in 2028, with 36% trading below 90 cents and 22% below 80 cents — a potential source of disruption that could outweigh new supply concerns. Adeel and Till reinforce that selectivity and sponsor quality are increasingly critical filters.