Why the interest rate ‘bark’ has been worse than its ‘bite’ 🐶

Borrowers are “well positioned to absorb higher rates” ... for now 💵

Broadly speaking, rising long-term interest rates are a headwind for borrowers, including most households, businesses, and governments.

So then why hasn’t this year’s interest rate rally led to job cuts, weaker spending, and disappointing earnings? Why is the S&P 500 down less than 3% from its all-time high?

As we’ve been discussing, it’s more complicated than “higher interest rates are bad.”