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It is the refinancing that is worrisome.
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If central bank reserves are used, "the money will be returned once we get the refinancing that we are negotiating" with the International Monetary Fund, Mr. Amadeo promised.
Since May firms such as Fiat, Pernod Ricard, a drinks firm, and Wind, an Italian telecoms firm, have all raised high-yield debt, and many more are set to follow suit.So many firms are refinancing that the point at which there is likely to be a potentially worrying spike in high-yield debt falling due has receded from next year to 2012, says Martin Fridson of Fridson Advisers.
However, it's refinancing that's actually making some progress on this front, reducing payments on average by $150 a month.
But as part of the budget deal Mayor Michael R. Bloomberg reached with state lawmakers this spring, the city is set to refinance that debt, borrowing more money to pay off the old bonds.
"There is almost 1,000 billion euros in refinancing that needs to be done next year, while the risk premium on interest rates is increasing strongly.
Barneys is hoping to refinance that facility, as well as ease the terms of other debt.
This time the culprit is the end of the refinancing boom that will presumably come as interest rates climb.
The logic behind the move is that refinancing the existing debt would let the M.T.A. take on $10 billion in new debt, while keeping its annual debt payments the same as if it had borrowed $7 billion without the refinancing.
The insurer might at some point be able to refinance that.
In situations where the main reason for the refinancing is that current interest rates are favorable, it would appear the co-op would be is in a better bargaining position.
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