Why a $1.5 trillion source of corporate financing is choking on higher rates

Österreich Nachrichten Nachrichten

Why a $1.5 trillion source of corporate financing is choking on higher rates
Österreich Neuesten Nachrichten,Österreich Schlagzeilen
  • 📰 Reuters
  • ⏱ Reading Time:
  • 26 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 14%
  • Publisher: 97%

A financial stream that helped fund the world's riskiest companies and grew into a market estimated at $1.5 trillion in the low interest rate years is drying up, as aggressive rate hikes bring tougher borrowing conditions and uncertainty.

of U.S. retailer Bed Bath & Beyond expose cracks in business models that were previously insulated by abundant money supply and low rates, analysts said.

A "downside risk," she said, would be "the lack of funding at an affordable level," for weak cashflow borrowers whose existing loans are due for refinancing. "You've got more risk now and you want to be compensated for that risk," said Aza Teeuwen, portfolio manager at fixed income specialist asset manager TwentyFour.

S&P calculates that while CLO equity investors were able to get a 15% annual return before 2022, deals priced now would offer about 7%.

Wir haben diese Nachrichten zusammengefasst, damit Sie sie schnell lesen können. Wenn Sie sich für die Nachrichten interessieren, können Sie den vollständigen Text hier lesen. Weiterlesen:

Reuters /  🏆 2. in US

Österreich Neuesten Nachrichten, Österreich Schlagzeilen

Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.

Why this Wall Street firm walked away from a $130M Pennsylvania pension investmentWhy this Wall Street firm walked away from a $130M Pennsylvania pension investmentInsight Partners Partners Fund XIII won a close vote but pulled out when Gov. Josh Shapiro asked the PSERS board to reconsider its decision.
Weiterlesen »

Why The Witcher Season 3's Rotten Tomatoes Audience Score Is So Bad (It's Not Just Henry Cavill Leaving)Why The Witcher Season 3's Rotten Tomatoes Audience Score Is So Bad (It's Not Just Henry Cavill Leaving)The Witcher season 3 has struggled due to Henry Cavill’s departure, but that isn’t the only reason the season is suffering among fans and critics.
Weiterlesen »

Why This Utah Snow Is A Red, Pink Shade - Videos from The Weather ChannelWhy This Utah Snow Is A Red, Pink Shade - Videos from The Weather ChannelHave you ever seen snow that isn’t white? What is causing this 'watermelon snow' in the Utah mountains? - Videos from The Weather Channel | weather.com
Weiterlesen »

How Old Blake Lively Was In Accepted (& Why It Was Controversial)How Old Blake Lively Was In Accepted (& Why It Was Controversial)How old was Blake Lively in Accepted? Here's why her age in the 2006 comedy movie was considered a problem, particularly by Justin Long.
Weiterlesen »

Animated video narrated by N.J. mayor explains why reparations for Blacks should be taken seriouslyAnimated video narrated by N.J. mayor explains why reparations for Blacks should be taken seriouslySay the word: Reparations in New Jersey was released this month.
Weiterlesen »

Here's Why The End Of Affirmative Action Will Be Devastating For People Like MeHere's Why The End Of Affirmative Action Will Be Devastating For People Like Me'I hoped that affirmative action could create a pathway for someone who looks like my son to gain access to the elite college campuses that have traditionally excluded us.'
Weiterlesen »



Render Time: 2025-03-10 21:25:16