Rising rates throw a spanner in investment bankers’ spreadsheets
- Posted on September 17, 2026
- By Financial Times
- 4 Views
- 1 min read
In brief
Rising interest rates create a paradox for investment banking valuations. While traditional financial models suggest higher discount rates should diminish company values, equity markets demonstrate resilience with sustained stock performance. This disconnect reveals how investor sentiment, growth expectations, and market dynamics diverge from textbook capital asset pricing assumptions, challenging conventional wisdom in corporate finance.
Summary auto-generated by AI from the original publisher's content. Editorial standards.
Rising rates throw a spanner in investment bankers’ spreadsheets
When the cost of capital goes up, the value of a company theoretically goes down. Share prices tell a different story
