Estimates differ, but bank and corporate bond redemptions hover around USD 3 to 4,000 billon annually from 2010 to 2012, double the annual amount of the mid-2000s. Roll-over of government debt will come on top of those needs. Leveraged borrowers such as high-yield companies also face refinancing pressure. And securitization markets are thawing only very slowly.
Overall, markets will need to refinance higher debt levels with lower average quality and with a reduced tolerance towards leverage, in a time window when support schemes will progressively unwind. Such absorption pressure may well lead to higher and more volatile funding costs.