๐Ÿ“ˆ TKer by Sam Ro

๐Ÿ“ˆ TKer by Sam Ro

Why higher interest rates haven't crushed corporate profits ๐Ÿค”

In business, it's never ceteris paribus ๐Ÿง

Sam Ro, CFA's avatar
Sam Ro, CFA
Aug 01, 2023
โˆ™ Paid
The yield on the 10-Year Treasury note is often used as a benchmark for other forms of debt. (Source: Federal Reserve, FRED)

Interest rates have trended higher for the past three years, after falling for 40 years.

Itโ€™s a development that threatens to morph into multiple headwinds. For more, read: A bunch of ways higher interest rates are bad ๐Ÿ‘Ž

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 havenโ€™t yet taken a material bite out of corporate profits.

User's avatar

Continue reading this post for free, courtesy of Sam Ro, CFA.

Or purchase a paid subscription.
ยฉ 2026 Samuel Ro ยท Privacy โˆ™ Terms โˆ™ Collection notice
Start your SubstackGet the app
Substack is the home for great culture