Europe Capital Partners sees US interest rates staying higher for longer
TLT•Europe Capital Partners said expectations for a rapid, sustained decline in US interest rates remain premature, citing persistent inflation concerns and rising Treasury yields.
1. Rates and company finances
In a November 11 analysis, Europe Capital Partners said US Treasury yields remain on an upward trend as inflation concerns persist, while bonds are becoming increasingly attractive. It said companies reliant on excessive leverage and cheap refinancing face growing pressure on earnings and valuations, and highlighted strong balance sheets, sustainable cash flows, disciplined capital allocation and reasonable valuations.
