In its latest piece of market intelligence in the CIT Executive Insights video series of in-depth executive Q&As, Neil Wessan, group head and managing director, CIT Capital Markets, in “2015 Capital Markets Outlook”, observes that with the possibility of rising interest rates on the horizon, middle market companies that fail to engage in any type of hedging activity are potentially leaving themselves exposed to higher costs of capital in the future.
“We think it’s a mistake for middle market companies to operate with high amounts of exposure that could be impacted by rising interest rates,” said Wessan. “Companies can take a prudent approach today and avoid high costs tomorrow through a variety of products. Doing this could help protect their loans rather than waiting to hedge once rates have already risen.”
Some of the other Capital Market trends Wessan reflects on include:
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