Scio Capital warns higher rates raise refinancing risks for non-investment-grade borrowers

• Scio Capital warned of refinancing risks as non-investment-grade debt accounts for 31% of corporate refinancing requirements across 2026-2028.
• Roughly 67% of non-investment-grade debt maturing in that period carries interest rates of 6% or less, exposing borrowers to higher refinancing costs.
• US annual CPI reached 3.7%, up from 2.4% in February; the latest monthly increase was 0.4%.
• Traders fully price a quarter-point December rate hike; odds of a half-point increase rose to 13.6% from near zero before the report.
• The firm recommended moving up the capital stack, diversifying income beyond traditional corporate credit and selling low-conviction positions.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Scio Capital LLP published the original content used to generate this news brief on November 12, 2026, and is solely responsible for the information contained therein.