Fed Rate Increases Are Squeezing Consumer-Finance Companies
The financial squeeze that started about six months ago for companies that lend to ordinary Americans is getting worse, contrasting sharply with recent rallies in stocks and corporate bonds. The main reason: These finance companies have lost access to easy money. Widespread economic uncertainty has made debt investors less willing to buy the bonds these nontraditional lenders issue. Higher interest rates, courtesy of the Federal Reserve, have given investors other attractive options.
Now, these finance…