LIBERTY STREET ECONOMICS
What's New with Corporate Leverage? Nina Boyarchenko and Or Shachar
The FOMC started increasing rates on March 16, 2022, and after its January 31 meeting, the lower bound of the target range of the federal funds rate had reached 4.50 percent, a level last registered in November 2007. Such a rapid rate increase could result in higher funding costs for U.S. corporations. This post examines how corporate leverage and bond market debt have evolved over the course of the current tightening cycle and compares the current experience with the previous three tightening cycles. |
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