Jake Remley, portfolio manager at Income Research + Management, provided insight in an article for Reuters on rising bond yields and use of fixed coupons. Jake explained how this is related to the concerns of the Fed raising their short-term interest rate and inflation, which is problematic for those issuing floating rate debt. He also stated the importance of locking in low fixed coupons for high yield issuers, since they have lower debt coverage ratios.
Reuters: U.S. companies issue more fixed-rate debt as yields rise
March 16, 2021
Original article by Patturaja Murugaboopathy