In the past 24 months, central banks across the globe have shifted interest rates more aggressively than at any point in the last decade. While rate hikes were initially a response to post-pandemic inflation, the aftershocks are now being felt across every layer of the private client space.
For investors and families with fixed income holdings, private credit exposure, or long-term property interests, these shifts present both short-term disruption and long-term opportunity.
Unanchored Expectations.
Many portfolios—especially those structured during a low-rate decade—are underperforming against new yield benchmarks. Investors are now questioning long-held allocations in bonds, real estate, and high-dividend equities. Repricing risk is real.
Debt Pressure.
For clients with leveraged investments or family offices financing estate transitions, rising rates have increased cost of capital and liquidity strain. Poorly timed refinancing now eats into long-term returns.
Selective Re-Entry.
Yields are no longer compressed. High-quality bonds, structured notes, and floating-rate products are becoming attractive again—especially for those seeking income with clarity.
Rebalancing with Intent.
This is a moment to revisit core vs. satellite allocations. Opportunities exist to trim exposure to inflated asset classes and re-enter segments like private credit, which now carry more favorable risk-adjusted premiums.
Redesigning Duration.
Portfolios are being restructured not just by asset class, but by horizon. Shorter-term buckets now carry real yield—unlocking new liquidity strategies for clients in transition or retirement planning phases.
Volatility isn’t the enemy. Misalignment is. Clients who adjust with structure—not panic—will find that today's rate environment offers more flexibility than it appears.