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      03-20-2019, 06:30 AM   #59
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Quote:
Originally Posted by WestRace View Post
Maybe that's why the market got all freaked out when the FED raises rate. How can a .25% here and there be such a big deal? Everywhere is just too leveraged up.
Not all debt is variable rate or short term. I would guess much is fixed, so not subject to rate movements until rolled over or new borrowings (which will slow, limiting expansion, as rates move up). Even federal debt is not nearly as variable as headlines would have you believe.

Debt size doesn’t really matter if there is sufficient cash flow and/or assets/reserves to cover it. So debt to FADS (funds available for debt service) is a better measure than total debt. Credit Rating Agencies (Moodys, S&P, Fitch) publish on this now and then for states and countries, as well as individual companies.
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