2min chapter

We Study Billionaires - The Investor’s Podcast Network cover image

TIP565: Why Buffett is Doubling Down on Japan w/ Dan Rasmussen

We Study Billionaires - The Investor’s Podcast Network

CHAPTER

The Effect of Higher Interest Rates on Company Earnings

Most would naturally assume that with much higher interest rates, companies rolling over their debts, it's going to lead to a lot of downward pressure on companies' earnings and income statements. But by and large, rising interest rates for public companies in the United States is not a huge problem. The really small, really risky companies who have all borrowed the private credit markets all floating pretty much. And so I think everyone's favorite asset class that is now 40% of a lot of portfolios is in a lot of trouble.

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