GOLDMAN SACHS: Here are the 5 ways companies can win their escalating battle with higher rates

Business Insider | 3/9/2018 | Joe Ciolli
iVchan (Posted by) Level 3
Click For Photo: https://amp.businessinsider.com/images/56c4ed7e6e97c660008b7d46-750-375.jpg

Goldman Sachs has some ideas for how companies can offset higher rates by pursuing internal growth.

The firm sees 4% as a crucial threshold for the US 10-year Treasury yield.

Companies - Pressure - Federal - Reserve - Tightening

If US companies are going to withstand the pressure of Federal Reserve monetary tightening, they're going to have to grow.

So says Goldman Sachs, which sees 4% as a crucial threshold for the US 10-year Treasury yield. If rates exceed 4%, the firm estimates, companies will have to generate 200 basis points of medium-term growth to neutralize the negative effect on valuations.

Boost - Growth - Expectations - Decline - Equity

"A boost to medium-term growth expectations or a decline in the equity risk premium (ERP) could offset the...
(Excerpt) Read more at: Business Insider
Wake Up To Breaking News!
Sign In or Register to comment.

Welcome to Long Room!

Where The World Finds Its News!