Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: hugh thorne who wrote (4551)	8/31/2001 9:07:20 AM
From: John Pitera	Respond to of 33421

I'm not sure what the average floating rate interest expense burden is in the US business sector. Also I think that quite a bit of the corporate debt floats within ranges and there are caps and collars so that rates float within a range but, the corporate borrower does not get the full hit, in the event of say a 600 basis point move in interest rates. I'd be interesting in seeing those numbers if you come across them. we could very quickly estimate the positive impact on earnings from the 30% or so reduction in carrying costs for the next 12 months or so. how do you come up with the 30% number? John