Shocking stat of the day: US corporate net interest payments are down to just 0.4% of GDP, their lowest in at least 10 years. This percentage has declined -1.2 points since 2022, despite the Fed hiking rates from 0.25% to 5.50% between 2022 and 2023. This comes as many companies locked in ultra-low fixed rates during the pandemic, protecting their interest costs from the subsequent rise in rates. Over the same period, US government net interest costs have increased +1.2 percentage points to 3.6% of GDP, near their highest in at least 10 years. Unlike corporates, the US government did not lock in enough ultra-low rates in 2020, leaving it increasingly exposed to much higher interest costs as rates rose. The US government is taking the biggest hit from higher rates.