Marcus Lemonis: Why I'm not worried about leverage in the credit market right now

Marcus Lemonis: Why I’m not worried about leverage right now

The state of the overall credit market is still "pretty robust," according to the star of CNBC's "The Profit" Marcus Lemonis.

Despite fears of what ripple effects a looming rate hike from the Fed could trigger, Lemonis painted a rosy picture of what he said he's experiencing firsthand in credit markets as an active borrower.

"I'm in the market as we speak right now, and I did not see a lot of headwind in the marketplace, even when I tried to change terms and look for no soft calls or changes in pricing or upsizing," he said Friday in a discussion with Charles Schwab Chief Investment Strategist Liz Ann Sonders on CNBC's "Power Lunch."

Marcus Lemonis
Scott Mlyn | CNBC

When pressed about the possibility that holding rates lower for longer could invite expanded leverage on the part of more borrowers, albeit even at conservative amounts, Lemonis dismissed concerns.

"The market doesn't have amnesia when it comes to understanding where the leverage should be," he said. "You're not seeing leverage back to the five-, six-, seven-times like you did five years ago, so conservative leverage with good ratings are still giving you the ability to borrow."

Sonders echoed Lemonis' sentiment, adding that for the most part, even cash-rich companies are still borrowing to fund buybacks over capital spending.

Answering a question on how the 30-year bull market in bonds might eventually end, "The Profit" host maintained his optimism.

"It doesn't have to end if borrowers' fundamentals stay the same — if borrowers' fundamentals change, then it ends — but if they stay the same, then why should it end?"

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