"The end of the 40-year bond bull market...poses risks to leveraged players that have grown accustomed to low cost debt," say Evercore strategists.
The utility and real estate sectors are most at risk from the end of easy money, but healthier household balance sheets should support consumer-facing stocks, say strategists at Evercore ISI.
The worldwide surge of inflation “has forced the Fed and global central banks to hike rates at a record pace,” Evercore’s equity and derivatives strategy team, led by Julian Emanuel, said in a note that published over the weekend. This may be particularly problematic for those sectors that tend to carry greater levels of debt, also known as being highly leveraged.
The sectors relatively more immune for higher interest rates — the “Debt Covered” — are information technology, energy and healthcare.
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