May 9 (Reuters) - U.S. high-yield rated corporate debt borrowers have refinanced almost $270 billion in bonds and loans this year and are on pace to beat 2023's $334 billion, according to a new report from JPMorgan.
Refinancing volumes are already ahead of a 15-year low of $132 billion in 2022, but behind the record $512 billion refinanced in 2021.
Leveraged loans have made up the majority of refinancings so far this year at $167 billion, while $102 billion in high-yield bonds have been refinanced, according to the report.
High-yield primary activity in the United States has been strong in 2024, as borrowers seize on tight spreads and investors seek attractive yields in the asset class.
U.S. high-yield bond spreads were at 338 basis points on Wednesday, which are 40 bps lower year-to-date and only 2 bps above their low after the 2008 financial crisis, JPMorgan noted.
Effective yields on high-yield bonds were last at 7.70% on Wednesday, according to the ICE BofA U.S. High Yield Index. (Reporting by Matt Tracy; Editing by Kirsten Donovan)
