Skip To The Main Content

News & Events

Simpson Thacher in the News Go Back

David Azarkh and John Ericson Quoted in Law360 on Impact of Fed Rate Hike on Debt Market

03.28.22

Corporate Partners David Azarkh and John Ericson were quoted in a Law360 article, titled, “Fed Rate Hikes Add Twists To Uncertain Debt Markets.” The article explored the impact of the Federal Reserve’s recent shift towards higher interest rates on companies’ borrowing costs. David explained that some investment-grade companies with immediate funding needs can still find attractive terms even with the increased rates. “In the investment-grade world, it's company-dependent. There are plenty of people dipping their toes in the water," he said. John further noted that merger opportunities, especially for more pressing matters, could lead to more bond offerings. He explained, “To the degree that companies need financing now, you'll continue to see situations like M&A financing, where due to the size of the deal or other factors, companies may choose to have bonds as part of that financing.”

To read the full article, please click here (subscription required).