As Borrowing Costs Soar, Equity Becomes the New Frontier for Corporate Finance The once straightforward strategy of borrowing has become a complex decision for CFOs, thanks to soaring interest rates. This shift is largely due to the Federal Reserve and other central banks increasing interest rates to the highest levels in decades, which has significantly raised the cost of debt financing. Companies across the spectrum—from smaller firms like Myriad to larger entities like Campari and Aston Martin, as well as startups such as Reddit—are turning their gaze towards equity markets as a more viable option for raising capital, especially given that share prices are near record highs. While debt continues to be a critical component of corporate finance due to its cost-effectiveness and tax-deductible interest, the trend towards equity financing could herald substantial changes in corporate finance strategies and the broader market dynamics « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts I’m an Economist: Here Are My Predictions for Inflation If Trump Wins READ MORE CEOs Rank National Debt as the Top Geopolitics Threat in 2024 READ MORE Dollar's Dominance Under Scrutiny: Morgan Stanley's Perspective READ MORE De-Dollarization Accelerates as 20 Nations Sign On to Russian Financial System READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment