Oak Capital warns: $200 billion of high-interest debt is facing a “maturity wall,” and a wave of corporate liquidations may be imminent

The Zhitong Finance App learned that non-performing asset investment giant Oaktree Capital Management (Oaktree Capital Management) said that as financing costs remain high and debts mature one after another in the next few years, companies holding about 200 billion US dollars in debt are facing a liquidation.

Danielle Poli (Danielle Poli), managing director and co-portfolio manager of Oak Capital, said in an interview on Tuesday: “If Federal Reserve Chairman Kevin Warsh (Kevin Warsh) really focuses on fighting inflation and driving interest rates higher, this will put pressure on some borrowers. At the same time, we are facing an 'expiration wall'.”

According to Oak Capital, about 250 borrowers yielded more than 15% of their $200 billion debt or 90 cents below face value. Polly said this will be “the next wave of opportunistic investments we are about to see.”

However, Polly pointed out that for non-performing debt investors, the time to “fully bet” has not yet arrived. However, she added that the so-called “debt management operations” carried out in the early 20s of this century only “postponed the problem,” and the company now faces “hard due dates” of 2027 and 2028.

“This could create that 'difficult moment' we've been waiting for.” Polly said.