U.S. companies are moving quickly to refinance debt, locking in lower interest rates amid economic uncertainty and fears that market conditions could shift suddenly, the Wall Street Journal writes.
With credit spreads near their tightest levels in decades and the Federal Reserve cutting rates, corporate borrowers are choosing to act now rather than gamble on even better terms later.
Corporate refinancings totaled about $425 billion in 2025, up 5% from the prior year and the highest level since 2020, according to Dealogic.
Executives cited concerns about market volatility, geopolitical risks and political uncertainty as key reasons for refinancing early.
Companies such as Savers Value Village, Elanco Animal Health, and Hovnanian Enterprises refinanced well ahead of maturity, extending debt timelines, lowering borrowing costs and boosting liquidity. In several cases, firms reported millions in annual interest savings that outweighed one-time refinancing costs.
Finance chiefs say the strategy reflects a defensive mindset: secure today’s favorable terms while they are available, rather than risk tighter credit or higher rates later if markets turn.
