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One other factor in all of this is how companies used debt to sail through the pandemic. They took out loans, and now the bills are coming due. If you can't gro
by slowmovintarget 4y ago
One other factor in all of this is how companies used debt to sail through the pandemic. They took out loans, and now the bills are coming due. If you can't grow revenues to match interest payments, you often have to cut OpEx, and that seems to be what some companies are doing.
Still sucks if you're on the receiving end, though.
- stu2b50 4y agoI don’t think old loans are the problem. Corporate paper was dirt cheap during the pandemic, and the interest will still be dirt cheap now. The fact that new loans are not cheap thanks to high interest rates is the more threatening factor.