BlackRock’s Lynam Says Rates ‘Causing Stress’ at Some Businesses

Higher interest rates are putting more financial pressure on some US companies with large amounts of floating-rate debt, according to Amanda Lynam, head of macro credit research at BlackRock Financial Management.

• Some businesses in a “challenging environment” because of higher borrowing costs of capital cannot expect any relief from rate cuts, Lynam told Bloomberg TV Wednesday
• While risk spreads in the corporate debt market are “fairly contained,” there’s room for them to climb higher as some face large maturity payments, Lynam said
  • Borrowing costs for floating-rate debt have moved higher along with the Fed’s policy rate, “which is ...