Market Perspectives
Rates, Liquidity and the Price of Risk
Inflation, energy prices and policy expectations continue to influence the cost of capital across markets.
SOVEREIGN AXIS CAPITAL · RESEARCH1 min read
Executive perspective
A considered view of the subject.
Rate sensitivity cuts across long-duration equities, bonds, leveraged companies and risk assets.
Research focus
Questions that frame the analysis.
The key is to understand transmission: rates affect discount rates, financing costs, demand and relative asset attractiveness.
Investment perspective
The portfolio lens.
Stress-test positions against more than one inflation and rate path.