US bad debt-rated corporations are issuing billions of dollars of short-term debt this year, causing a significant expense to their profits and interest coverage ratios.

The research shows that junk-rated bonds and loans due in 2024 have nearly halved over 2023 by $70 billion, and the entire debt load due by 2025 is down about 35% from 2022 levels.

Refinancing rates are also higher, with junk bond issuers paying 100-300 basis points more in coupons on new refinanced debt than in-place coupons.