Originally Posted by jyl (Post 4223777)

I talked to a company today, 10X EBITDA/interest, 3.3X debt/EBITDA, BB rated, $1.6BN annual sales, appx $350MM FCF/yr vs $1.2BN debt - they are looking for a bank loan to do an acquisition, last month they were being quoted 8% to 10%.yr interest, now they are being told no loan is available at anything like that rate.

Interesting, in an environment where residential mortgages are around 6%. Consumers are getting better rates than businesses, yet it is consumer default rates that are soaring. That doesn't really make sense to me. Feels like either interest rates for businesses should come down, or interest rates for consumers should go up. The latter would crush consumer spending even more.