With the Federal Reserve expected to raise interest rates later this year, it might be wise to consider stocks of companies that could benefit from higher interest rates. Today’s article identifies four such companies – “companies whose short-term debt was greater than the amount of their long-term debt. These companies could benefit from refinancing their debt to lock in low rates and might choose to offer long-term bonds when the Fed acts. This action could boost their stock price by eliminating the uncertainty associated with rolling over short-term debt. Management could then focus on operations rather than continuous refinancing.” For an analysis of each of these companies, as well as the author’s recommended action for each, CLICK HERE.
4 Stocks That Might Be Rate Hike Beneficiaries
- by Bob Mitchell
Tags:BondsDebtFederal ReserveHigher Interest RatesInterest RatesLong-Term BondsLong-Term DebtLow RatesRefinancingShort-Term DebtStock MarketStock Pricestocks