Lots of companies borrowed huge amounts over the last few years during the period of unusually low interest rates. Often these borrowings were used to then pay dividends rather than paying dividends from real profits.
Whilst there is no imminent indication (unfortunately) that interest rates will rise, many of these companies now loaded with vast debts may go bust because even at these unusually low interest rates if you have no income due to Covid-19 you are still going to struggle to pay back these loans.
One starts to wonder if Governments have been conspiring to keep interest rates artificially low so they also can borrow vast amounts at cheap rates. Now they need to borrow even larger amounts to deal with an emergency. At some point the amount of debt no matter how cheap the interest rate becomes too much to afford as then even small increases in the interest rate have a disproportionate impact.
