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Financing Costs

All articles tagged with #financing costs

businesseconomy2 years ago•0 min saved

"Rising Bankruptcies: Private US Companies Struggle with Shrinking Profits"

Private US companies are facing financial strain as their earnings and profit margins dwindle due to increased financing costs following Federal Reserve rate hikes. A report from Marblegate Asset Management and Rapid Ratings highlights the potential ripple effects of these smaller companies going bust, as larger corporations rely on them as suppliers, which could disrupt supply chains and lead to increased costs for bigger enterprises.

via Bloomberg|

#businesseconomy #federal-reserve #financing-costs

energy2 years ago•4 min saved

Orsted's Withdrawal from N.J. Projects Deals Blow to Biden's Green Agenda

Orsted, a leading offshore wind farm developer, has announced the cancellation of two wind farm projects off the coast of New Jersey, resulting in a write-off of up to $5.6 billion. This decision reflects the challenges faced by the offshore wind industry in the United States, including high inflation, soaring interest rates, and delays in approvals during the Trump administration. The cancellation of these projects is a setback for the Biden administration's plans to reduce greenhouse gas emissions and highlights the need for a reset in the cost of offshore power. Other companies, such as BP, have also faced difficulties in the offshore wind market, leading to write-downs and reassessment of future plans. Despite these challenges, offshore wind remains a viable industry, but lessons are being learned and adjustments are needed to ensure its success in the future.

via The New York Times|

#energy #financing-costs #new-jersey

economy2 years ago•2 min saved

Treasury's Strategy to Tackle Rising Debt and Rates: Amplifying Bond Sales

The Treasury Department plans to increase the size of its bond auctions in order to manage its growing debt load and rising financing costs. The department will auction $112 billion in debt next week and will increase the auction size of various maturities, focusing more on coupon-bearing notes and bonds. The Treasury expects to increase the sizes for 2- and 5-year notes by $3 billion a month, the 3-year note by $2 billion a month, and the 7-year note by $1 billion a month. The auction changes are important to investors as they could provide insight into where yields are heading.

via CNBC|

#auction-size #bond-sales #debt-load

business2 years ago•0 min saved

Top Buyout Candidates for M&A Revival: 4 Stocks to Watch

Companies have become hesitant to make acquisitions due to higher financing costs and lower expected earnings from deals. However, the challenges for the mergers-and-acquisitions environment should abate later in the year, unlocking more deals. Macy's, Doordash, and other stocks could be potential buyout candidates when M&A returns. Total deal value in the U.S. for the first quarter of 2023 was $257 billion, down 38% from the first quarter of last year.

via Barron's|

#business #buyout-candidates #economic-expectations