Rising Interest Rates are a Growing Pain for Companies With Junk Loans

For more crisp and insightful business and economic news, subscribe to The Daily Upside newsletter. It's completely free and we guarantee you'll learn something new every day.

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