“Most of us have been wrong on the timing of things going bad, and right now there is really not much of a problem.
That means it can be years before a company needs to refinance those bonds at higher interest rates.
The longer inflation remains elevated, the longer interest rates will also stay high, meaning that an increasing number of companies could be forced to shoulder higher borrowing costs.
Their latest economic projections suggested that interest rates could be hovering near 4.6 percent at the end of 2024.
That would be lower than where they are now, but still a big change after years of near-zero interest rates.
Persons:
“, ”, John McClain
Organizations:
Brandywine Global Investment Management