Journal Article
Corporate Interest Expenses Are Expected to Increase Further
Bi, Huixin; Marsh, W. Blake; An, Phillip (2024-02-02)
Although firm leverage has fallen from pandemic highs, rising interest rates have raised firms’ interest expenses. The effects of this monetary policy tightening are likely to continue unfolding over the next few years. As low-yield, fixed-rate corporate debt issued during the pandemic matures, firms may need to refinance this debt at higher rates, further increasing their interest expenses. However, most corporations are well-positioned to carry these interest expenses so long as their earnings remain stable.
Economic Bulletin

Journal Article
Are Firms Hoarding Cash Post-Pandemic
Dilts Stedman, Karlye; Marsh, W. Blake; An, Phillip (2024-06-25)
Cash holdings rose to record levels following the pandemic, raising concerns that firms are “hoarding” cash beyond what is needed for economic use. To investigate this claim, we examine the determinants of cash holdings at public firms pre- and post-pandemic. We find that despite significant structural changes in the economy, firms’ cash allocation incentives are mostly unchanged. Investment opportunities and profitability best explain the distribution of cash across firms today, followed by precautionary motives.
Economic Bulletin

Journal Article
Interest Rates and Nonbank Market Share in the U.S. Mortgage Market
Pandolfo, Jordan; Acker, Chris; An, Phillip (2025-02-13)
Differences in business models help explain how banks gain market share from nonbanks when interest rates are high.
Economic Review , Volume 110 , Issue 1 , Pages 17