To combat inflation, the Federal Reserve continues to raise interest rates. While rate increases present challenges for all borrowers, it provides companies with an exceptional opportunity to receive higher yields from safer assets. In other words, less risk for the same reward.
When interest rates were at 0%, companies with liquidity to spare could get yields at 3-4% by investing in riskier assets, such as equities and lower-quality bonds. With rising interest rates, now they can find the same…
