RE:RE:RE:Wow good thing You raise a good point about interest rates being very low and they are likely going up.
On that topic, I see reason for optimism. Inflation is going at a very high rate and interest rates will rise to deal with it. BBD interest rates will eventually raise when it has to roll over the bonds.
However, in the meantime, inflation will also affect BBD suppliers and the price it has to charge for planes. Everyting will go up, so to speak. And, all else equal, input costs go up by same percentage as BBD will have to raise on its planes and it balances out.
The spot where BBD wins, however, is on the principal on its debt. That does not raise with inflation. So, today we have a company with say $6.5 billion of revenue and $6.5 billion of debt. But once inflation takes hold for a few years, we will have $8.5 billion of revenue on $6.5 billion of debt, assuming no more principal repayments are made.
Inflation works to the advantage of a borrower in that it lowers the real price of repayment becuase the repayment is with future money, not today's money. The higher the inflation rate, and interests rates, the lower the present value of the debt (and that is just a mathmathical equation).
The real trick on all of this, of course, is to be able to raise the price to BBD customers by the same rate as BBD input costs (inlcuding interest on debt). If it can do that, then keeping debt at the same level will mean it will be easier to pay it off in the future.
So, in this one small way, the rediculous government spending which is causing inflation is helpful to a heavily indebted company like BBD.