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Companies have limited choices for refinancing needs.
Instead, corporate issuers with refinancing needs have turned to banks.
Maturities longer than the current 30-year maximum would reduce refinancing needs and appeal to institutions.
However, he added, "the next big hurdle is the refinancing needs of the banking system -- and there I'm really not sure what will happen".
Utilities and telecoms firms have refinancing needs of over $100 billion each, but financial firms owe the bulk of the debt: $3.3 trillion, or 78% of the total.
Greece's current bail-out deal with its European partners runs out at the end of February, and Greek banks still use the European Central Bank for refinancing needs.
Similar(28)
So you have $750 billion in refinancing needed over the next 24 months and you don't have one lender.
It is hoped that this would reassure private investors, mainly banks, into providing most of the refinancing needed.
The vast majority of the $3tn debt needs refinancing in a five-year timeframe starting in 2012.
Borrowers seeking to refinance will need to have the same amounts in home equity.
Ireland, thankfully, doesn't have an immediate need to raise cash, but if today's borrowing rates stay where they are until a point down the road when it needs to refinance, it may need a bailout from the European Union or International Monetary Fund, or both.
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