Climate group claims environmental and reputational risks outweigh prospective revenue for banks considering underwriting bonds for coal, oil, and/or gas companies.
Direct lenders are lavishing risky companies and private-equity firms with capital at rates below what's available in the volatility-lashed high-yield and syndicated-loan market.
For both investment-grade and below-investment-grade public companies, debt refinancing and working capital improvements had great effect in 2020 and 2021.
As LIBOR rises—blowing past 1% yesterday, for the first time in nearly two years—more struggling junk-rated borrowers may end up with negative cash flow, unable to pay interest payments on their loans.