Maturity Wall
A chart showing when a company's debt comes due. A concentration of maturities in one year creates refinancing risk \u2014 especially if credit markets are tight.
Why it matters
Companies don't default because they're unprofitable \u2014 they default because they can't refinance maturing debt. A maturity wall forces a company to access capital markets at whatever conditions exist at that time. If credit markets are tight or the company's fundamentals have deteriorated, the wall becomes a cliff.
How to read it
Look for: (1) near-term maturities (within 1\u20132 years) that exceed available liquidity, (2) concentration of maturities in a single year, (3) whether the company has a revolver or other liquidity to bridge gaps. A well-managed company will proactively refinance maturities 1\u20132 years ahead of schedule. A company that hasn't addressed near-term maturities is sending a warning signal.
Related terms
10Y Treasury · Altman Z-Score · Asset Sensitivity · Basel III · Bond ETF · Bretton Woods
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