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2026-07-15 18:50:12
[Standard Chartered Strategist Declares the End of the Low-Interest Rate Era, Capital Allocation Enters a New Phase of High Thresholds] ⑴ Standard Chartered's chief strategist points out that the world has entered a new era of structurally rising interest rates, and the long-standing low-interest-rate environment maintained by G10 countries has been completely reversed. ⑵ US interest rates will not return to zero, and interest rates in Europe and Japan have also risen significantly. This fundamental shift will profoundly affect asset pricing logic in the coming years. ⑶ Financing costs have jumped from near zero to the 4% to 5% range, meaning that capital allocation must be more prudent, and inefficient projects that could survive with zero-cost funding in the past will face elimination. ⑷ However, the strategist emphasizes that this does not indicate a capital shortage. Trillions of dollars are held in US money market funds, and alternative asset management institutions also hold huge amounts of investable capital. The market is not short of money; what it lacks are high-quality targets that can withstand the test of high interest rates. ⑸ The rise in capital screening thresholds will accelerate industry differentiation. Assets with stable cash flow and high returns will attract more funds, while business models that rely on cheap financing will face elimination pressure.
