Why higher interest rates haven't crushed corporate profits π€
In business, it's never ceteris paribus π§
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Interest rates have trended higher for the past three years, after falling for 40 years.
Itβs a development that threatens to morph into multiple headwinds. For more, read: A bunch of ways higher interest rates are bad π
The most obvious headwind is higher interest expenses on any floating-rate debt or maturing fixed-rate debt that has to be refinanced at higher market interest rates.
However, these higher interest rates havenβt yet taken a material bite out of corporate profits.
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