Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTDavid CoxWed, August 5, 2026 at 10:00 AM GMT+2 9 min readWork to address Europe's near-term loan maturity wall has accelerated since the spring, as borrowers took advantage of strong technicals to refinance and extend maturities. That activity has eased fears at the start of the year that the 2028 refinancing need in particular could pose a serious challenge. Gaps remain, however — particularly in software — and a fuller new-issue pipeline suggests conditions may not be so favourable come the autumn.Despite several big-ticket buyout deals, refinancing and extensions led supply in European loans this year, making up 67% of total volumes of €110.6 billion excluding repricings. The pace accelerated in the second half, which has whittled away at the European loan maturity wall. This debt was identified as a potential threat to the market at the start of the year, with a chunk of borrowers' financing needs dating from the height of the QE-fuelled LBO boom in 2021.Given that loans typically need to be addressed around 18 months ahead of maturity, this need was expected to come into sharper focus as the year went on — but the market has moved faster than expected to deal with it. "Sponsors have focused on the easier names but the strong technical has helped some deals get over the line that would have looked tough in a normal market," said one manager.Since July last year, the 2028 maturity wall has been cut by 57.7% from €90.9 billion to €38.4 billion. The 2029 need is down by 30.1%, pushing out the peak to 2031, when it reaches €98.8 billion. "The market is generally good at dealing with maturities," added a manager.Healthcare — the largest sector cohort in Europe's loan maturity wall — illustrates the pattern, with this segment's 2028 need roughly halving since April, from €12.5 billion to €6.4 billion.Sector spotlightNot all the work to address the maturity wall has been straightforward, however, and investors have taken a pragmatic approach. Among recent high yield deals, Pasubio in July priced a €400 million bond at 9.5% to take out E+450 FRNs due September 2028. The notes had been trading at a yield in excess of 10% as recently as July. "Given the history it was a good result," said a manager — who nevertheless noted the new deal has slipped below par reoffer into a rough 98.375/99 market, taking the yield through 10% on the bid side.Chemicals, building materials, and software are widely seen as the most difficult sectors in Europe, and progress here has been mixed. Managers note that self-help can play a part, as investors opt to roll rather than face a potential drawn-out sponsor negotiation.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info