El-Erian Warns of ‘Massive’ Corporate Refinancing Next Year
- Economist says high yield, CRE at risk of refinancing shock
- Full effects of Fed’s tight policy are just beginning
Mohamed El-Erian.
Photographer: Samuel Corum/BloombergThis article is for subscribers only.
Mohamed El-Erian is warning that a swath of corporations will be hurt by higher interest rates when they have to refinance next year.
“If you look at high yield, if you look at commercial real estate, there’s massive refinancing needs next year. Massive,” he said on Bloomberg Television Friday. “So that’s the point of pain which starts to happen.”