High interest rates reshape macro assets, and new investment environment challenges emerge🧐
The return of high financing rates will have a profound impact on macro assets. Young investors are entering a world with a "risk-free interest rate of 5%" that they have never imagined before; concerns about portfolio losses caused by rising interest rates have caused bank stock prices to rise in the past Down nearly 9% in the month, paper losses on banks' held-to-maturity portfolios are estimated at nearly $400 billion, while 10-year bond yields have surpassed SPX implied yields for the first time since the early 2000s, even on the once-hot The private equity space, in terms of executed deal volume, has also plummeted to 2020 levels, with soaring financing rates severely limiting financing options and exit assumptions for the foreseeable future.
