The Debt Wall That Could Hit Small Caps

Interest rate decisions remain one of the biggest concerns for investors, as borrowing costs have a direct impact on corporate profitability. Approximately 19% of the S&P 500's (SPY) outstanding debt is scheduled to mature before 2028, with another 29% maturing between 2029 and 2032, while the remaining 52% comes due after 2033. Smaller companies face a more challenging timeline. Within the Russell 2000 (IWM), roughly 20% of debt matures before 2028, but a much larger 60% is set to mature between 2029 and 2032, leaving only 19% maturing after 2033. If interest rates remain elevated and smaller companies are unable to refinance at lower costs before this wave of maturities, many could face significant financial pressure and may need to raise additional capital simply to service their debt. In contrast, the S&P 500 appears to be in a healthier position, with a more staggered maturity schedule that provides greater flexibility should higher interest rates persist. 

Source: Bloomberg, First Trust, The Business Week Graphic; 5/29/2026

This graph was produced by Lucas Juery, CFA, CFPⓇ and is not intended to provide financial advice.