Citi's Levkovich Says 3.25% 10-Year Yield Would Be 'Challenging'

The video discusses the correlation between the S&P and the 10-year yield, highlighting the potential shift from positive to negative correlation. It explores historical disconnections in price to yield since 2008, emphasizing high equity risk premiums and market distortions. The impact of interest rates on earnings and the cost of capital is analyzed, noting that despite rate hikes, businesses still have access to cheap capital due to tight credit spreads and low issuance. The video concludes with a discussion on private equity and long-term investment strategies.

At what bond yield level should businesses start to worry about the cost of capital?

Evaluate responses using AI:

OFF

What has been the impact of the Fed's rate hikes on the cost of capital for businesses?

Evaluate responses using AI:

OFF