What the Fed Hike Means for Corporate Borrowing Costs

The Federal Reserve rate hike repriced floating rate loans overnight, and fixed rate borrowing costs had moved well before the decision landed. Josh Cannington, StoneX VP of Interest Rate Derivatives, explains how the unanimous quarter point move feeds through to corporate borrowing costs and hedging decisions. The 10-year Treasury yield fell on the day even as the front end of the curve held on to a steeper path than the Federal Reserve dot plot projects. Kevin Warsh has brought a sparer communication style to the chair, leaving borrowers with a delivered hike but an unresolved path, and a curve that is flattening as credibility returns to the long end. Discover Actionable Markets Insights with StoneX Market Intelligence: https://shop.stonex.com/collections/all?utm_source=youtube&utm_medium=social&utm_campaign=sxtv_guest_josh_cannington&utm_content=share 00:00 - Fed Hike Lands Unanimously 00:36 - Fed Threats Became Action 02:11 - Warsh Keeps Markets Guessing 03:32 - Long End Finally Finds a Bid 04:18 - Floating Debt Reprices Fast 05:20 - December Hike Bar Sits Low Like this video? Subscribe and turn on notifications so you don't miss any videos from StoneX: https://www.youtube.com/@stonex_official Visit https://www.stonex.com/en/insights/thought-leadership/?utm_source=youtube&utm_medium=social for insights, perspectives and thought leadership from StoneX's global network of experts. Visit our website: https://www.stonex.com?utm_source=youtube&utm_medium=social #FederalReserve #InterestRates #StoneX #JoshCannington