SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: bull_dozer who wrote (76462)2/4/2023 5:41:04 PM
From: Lee Lichterman III2 Recommendations

Recommended By
ajtj99
towerdog

  Read Replies (1) of 97812
 
From what I heard, most companies financed in 2020-2021 so they have some time before they have to roll it. Many are saying it could be as long as 18 months to 2 years before the guano hits the fan.
On that same podcast I posted earlier, they touched on why it could get ugly. The first financers have preferred so they get their money back first. Everyone after usually gets stiffed so a lot of these companies that have been burning cash will have to pay a LOT higher rates when they roll their debt. When rates were zero, everyone was chasing any yield they could get but now there's lots of alternatives so companies that aren't promising are going to have a hard time getting people to bite.
Since most don't need to roll yet, there isn't much being offered so rates aren't high yet. When everyone needs to roll down the road though, rates will likely go much higher. They better hope for the soft landing scenario because if inflation comes back, everyone will demand higher rates. If a recession hits, everyone will demand higher risk premium aka rates.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News