Analyst: A 5% yield on U.S. Treasury bonds is unlikely to cause a "meltdown" in the short term, but if sustained for 12-18 months, refinancing pressure will impact housing, commercial real estate, and highly leveraged companies.
The U.S. 10-year government bond yield has reached its highest level since 2007. Jack Ablin, Chief Investment Officer at Cresset Capital, noted that a 5% yield itself won't immediately cause damage, but if high rates persist for 12 to 18 months, refinancing pressure will significantly impact cash flow, asset valuations, and credit quality when a large amount of debt issued at 2%-3% needs to be refinanced at 6%-8%. Billy Leung, Investment Strategist at Global X ETFs, believes the housing market will be the first to be affected, with highly leveraged companies, commercial real estate borrowers, and private equity-backed firms also facing significant pressure.
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Source:华尔街见闻 · Source Link
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