Rising Interest Rates are a Growing Pain for Companies With Junk Loans
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Think rising interest rates are a pain because of what they did to your mortgage? Talk to a CEO whose company mortgaged their future on junk loans tied to the US Federal Reserve's every move.
The high costs of floating-rate loans, which rise with interest rates and are a popular tool for companies with a less-than-stellar credit rating, are starting to weigh on firms carrying around ungainly amounts of debt. They could have a wider impact on the buyout market -- by sticking a wrench in it.
Source Fool.com
