If the Squeezes Were Hugs It Would Be Good
Here is an example of how companies will be facing a squeeze because of debt, this example in the health sector. The company had float rate debt insured by Ambac, sending the rate from 3.06% to 6%. In this example the rise in interest rate costs about 1/4 of the operating profit.
Debt servicing costs are likely to go up considerably for many companies. I can see some companies hit by both increases in debt servicing and input costs could end up really struggling. I suppose this is how the "reversal to the mean" in profts begins.