Cost of debt jumps for US companies in Q4'22

Cost of debt jumps for US companies in Q4’22

March 31, 2023 | Peter Brennan & Umer Khan | S&P Global Market Intelligence

Rising interest rates and a slowing economy are reducing US companies’ ability to repay their debts.

The median interest coverage ratio of companies rated investment-grade by S&P Global Ratings sank in the fourth quarter of 2022 to 6.95 from 8.05 in the previous quarter, according to the latest S&P Global Market Intelligence data.

The ratio — calculated by dividing earnings before interest and tax by the cost of a company’s debt-interest payments — is a closely watched measure of solvency and has slumped sharply since a peak of 8.94 in 2022.

Recent

Commercial Real Estate’s Private Credit Market Is Just Revving Up

May 7, 2024

I expect banks to actively decrease their commercial real estate exposure, resulting in a scarcity of debt capital, which is unlikely to change meaningfully for the next few years.

Private Wealth Is Heading To Alternatives—What’s Driving It And Where Is It Going?

May 2, 2024

Alternative investments is a top priority for 49% of North American family offices, while 34% are planning to increase allocations to private credit.

Manhattan Office Leasing Drops 23%

April 5, 2024

Office leasing volume in Manhattan retreated to 6.8M SF in Q1, down from the hefty 8.9M SF reported in the previous quarter.

REITs Climbed in March; Specialty REITs Lead in 2024

April 4, 2024

As of March 28, the dividend yield for the FTSE Nareit All Equity REITs Index was 4.06% and the FTSE Nareit Mortgage REITs Index yielded 12.18%, compared to 1.3% for the S&P 500.

Most Popular

Blue Vault Performance Reports Update 10-23-2023

October 23, 2023

Blue Vault has published the following Interval Fund and Tender Offer Fund individual performance reports...

Blue Vault Q2 2023 Performance Reports Update

October 3, 2023

Blue Vault Q2 2023 Performance Reports Update 10-3-2023 Blue Vault wishes to acknowledge and apologize for the delay in publishing some Q2 2023 NTR Individual Performance Pages (IPPs) as well as the full review. We recently added additional reporting metrics to our IPPs, and that, combined with coverage of all share classes and some additional…

Blue Vault Q2 2023 Performance Reports Update

September 25, 2023

Blue Vault Q2 2023 Performance Reports Update 9-25-2023 Blue Vault has published the Q2 2023 Nontraded BDC Industry Review as well as Individual Performance Report and Limited Operations pages for the following offerings (newly published pages in bold font): Nontraded REITS American Healthcare REIT Q2 2023 Apollo Realty Income Solutions Q2 2023 (limited operations) Ares…

Explore

Don’t miss alts news
and educational events
Subscribe Now