Higher Interest Rates Have Caused This Lending Market to Dry Up
Companies needing to raise money have had a tough time doing so in 2022. Companies with bad credit or too much debt found out this tough fact the hard way. After over a decade of low-interest rates and easy-lending conditions, companies with poor credit ratings are essentially getting shut out of lending markets. Why?
Rising interest rates and geopolitical tensions have contributed to volatility across all assets, including debt markets. As a result, fewer investors are interested in lending to low-quality companies amid economic uncertainty.
Let's take a closer look at how this new mindset impacts borrowers and lenders and what investors should watch for next.
Source Fool.com
