Key Highlights

  • Leveraged loan issuers extended $27 billion in amend-and-extend (A&E) deals in June 2026, up from $26 billion in May.
  • Year-to-date A&E volume reached $106 billion, outpacing the first-half 2025 total of $84 billion by 26%.
  • Institutional A&E volume hit $39 billion in Q2 2026, the strongest quarterly showing on record.

Leveraged loan issuers are reshaping credit markets by pushing back maturities through a surge in amend-and-extend (A&E) deals, with June 2026 volume hitting $27 billion. The wave of refinancing activity has driven year-to-date A&E volume to $106 billion, a 26% increase over the first half of 2025, as borrowers seek to avoid near-term repayment pressures. The shift reflects a broader strategy to delay maturities amid tighter credit conditions, with institutional activity accounting for $54 billion of the year’s total.

June A&E Volume Rises as Borrowers Delay Repayments

Leveraged loan issuers extended $27 billion in amend-and-extend deals in June 2026, up slightly from $26 billion in May, marking the second consecutive month of elevated activity. The 24 transactions in June surpassed May’s 21, signaling sustained demand for maturity extensions as borrowers navigate higher-for-longer interest rates. Institutional A&E volume reached $18 billion in June, while pro rata deals accounted for $8 billion, maintaining a near-even split in activity.

The $106 billion year-to-date total already exceeds the first-half 2025 figure of $84 billion, putting 2026 on track to surpass last year’s record pace. The trend underscores how borrowers are prioritizing liquidity over immediate repayment, even as refinancing costs remain above pre-2023 levels.

Institutional Activity Drives Q2 Surge

Institutional amend-and-extend volume hit $39 billion in Q2 2026, the strongest quarterly performance on record, as borrowers capitalized on lower yields to restructure debt. Pro rata A&E volume totaled $52 billion for the year, nearly matching institutional activity at $54 billion, a shift from prior years when institutional deals dominated. The balance suggests lenders are accommodating both large and mid-sized borrowers, though higher-rated issuers are gaining traction, 30% of 2026 A&E amendments were rated BB-minus or higher, up from 11% in 2025.

The data points to a market where credit quality is improving, but refinancing remains costly compared to pre-2023 benchmarks.

Credit Quality Shifts as B/B+ Borrowers Dominate

B/B+ rated credits accounted for 39% of amend-and-extend activity in 2026, up from 33% in 2025, as higher-rated borrowers drive the majority of refinancing. Meanwhile, the proportion of deals rated B-minus or lower fell to 27% in 2026, down from 44% in 2025, signaling a pullback in riskier refinancing. Sponsor-backed deals dominated the environment, making up $43 billion of the year’s activity, while non-sponsored transactions totaled just $12 billion.

The shift reflects lenders’ preference for stronger credits amid persistent macroeconomic uncertainty, though it also limits access for lower-rated borrowers seeking extensions. The $106 billion in year-to-date A&E volume reflects a strategic pivot by issuers to delay repayments, even as credit spreads tighten. The trend has been particularly pronounced in institutional loans, where Q2 volume hit $39 billion, the highest quarterly total on record.

However, the persistence of higher borrowing costs suggests that while liquidity is improving, the market has not fully reverted to pre-pandemic norms. Borrowers are likely to continue favoring amend-and-extend deals until yields drop further or economic conditions stabilize. Based on leveraged loan market data for June 2026.

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.