medium · Debt Capital Markets rates-macro-drivers
How does a mandatory prepayment affect the 'Maturity Wall' of an issuer?
- It pushes the contractual final maturity date of the loan out into the future.
- It has no real effect, since only scheduled interest, never principal, is being repaid.
- It reduces the total amount of debt that must be refinanced at the final maturity date.
- It builds an entirely new maturity wall by loading additional fresh debt onto the balance sheet.
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