Rate Reset

From 1/16 through today, the average interest rate on newly issued junk bonds has been 5.99%. While there were brief rate spikes to 10% in early 2016 and early 2020, they were short lived. Now things are different. Rates first crossed 9% in mid-2022 and have remained there since, with the current rate at 9.23%. This will make refinancing maturing debt quite painful from many low rated firms.