Why higher interest rates haven't crushed corporate profits 🤔 [PART 2]
5 charts that may ease your worries about corporate debt 😮💨
With long-term interest rates rising over the past three years, some observers are understandably concerned about what higher borrowing costs could mean for corporate profits.
As we discussed in the August 1 TKer, this really isn’t an urgent problem. Corporate balance sheets are relatively strong, corporate profitability is historically high, and there is limited need to refinance debt at market rates, since many companies have already refinanced in recent years at low rates.
For more on this, read: Why higher interest rates haven't crushed corporate profits 🤔
On Friday, Goldman Sachs analysts published a big research note exploring the concerns around higher interest rates and their impact on corporate credit. And they shared some charts and stats that illustrate the state of corporate finances pretty well.