Can GDP & Earnings Hold On? | Weekly Roundup
Supply Shock
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Refinancing Is Not Just Mortgages, Right?
When you have record low interest rates for a while and an industry dependent on acquiring assets, that are very levered to the price of interest rates. You get a whole swath of probably the institutional part of the real estate market, which is underwater and they're seeking short-term financing. 70% of corporate debt is less than one year. So all of these companies that borrowed cheap are going to have to refinance that debt at significant higher prices. That is going to chip in, that's going to eat into margins pretty badly.
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