Wolfe Research has flashed warning signs about some stocks that are highly leveraged that it says may struggle as interest rates continue rising and the country grows increasingly fixated on the possibility of a recession. Many companies used 2020 and 2021's period of low interest rates to "term out" their debt structures, meaning most do not have any debt reaching maturity in the coming quarters, according to Chris Senyek, an analyst at the firm.
mountain Wynn, MGM and Norwegian Fast-food chain Wendy's , meanwhile, has all of its debt set to mature in the next three years, making it unique among big-name corporations that used the pandemic's era of low interest rates to push out its borrowing. Wendy's beat fourth-quarter earnings estimates when it reported last week. The burger chain expects to earn between 95 cents and $1 per share this year compared with the $1 per share expected by analysts polled by FactSet.