Investors, executives say low-rated companies will overcome rising interest rates and weakening demand
Caps are reloaded at a factory of Woodstream Corp., whose term loan’s interest rate rose to about 10%, from around 5.7% last year.
Business is slowing and interest rates have jumped for junk-rated U.S. companies. Investors who trade their loans, along with corporate chiefs, remain undaunted.
Optimism has burgeoned that highly indebted businesses from consumer manufacturers to software firms will get through the coming quarters relatively unscathed. Loan prices have rallied, defaults remain low and executives say that higher borrowing expenses and weakening demand aren’t significantly altering their plans.
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