Big companies avoid damage from rate hikes - for now. But risks loom for smaller firms, private equity deals and future refinancing
• Big companies locked in cheap funding before rates rose, avoiding damage so far
• About a third of $1.3 trillion in junk bond debt comes due in next 3 years, facing higher rates
• Small businesses already paying much higher rates, showing signs of financial stress
• Private equity-backed companies loaded with debt are at high risk as rates rise
• Fed model forecasts inflation dropping by mid-2024 without major economic contraction