5-year Treasury just hit 5% for the first time since 2007.
That's not a headline. That's a repricing of reality.
For 15 years, we lived in a world where money was free. Corporations borrowed at nothing, private equity levered up 7x, and "risk-free rate" was a joke. Entire business models were built on the assumption that capital would always be cheap.
Now the 5-year is at 5%. The 10-year is pushing higher. The Fed isn't blinking.
What does this mean?
• Zombie companies that survived on cheap debt? They're getting exposed.
• Growth stocks priced for perfection? The math doesn't work anymore when the discount rate doubles.
• Real estate, private equity, venture capital? All repricing downward.
• Your savings account? Finally paying you something.
This isn't a crisis. It's normalization. Rates at 5% aren't high — they're normal. We just forgot what normal looks like.
The question isn't whether rates will come down. The question is: can your portfolio survive in a world where capital actually costs something again?
That's not a headline. That's a repricing of reality.
For 15 years, we lived in a world where money was free. Corporations borrowed at nothing, private equity levered up 7x, and "risk-free rate" was a joke. Entire business models were built on the assumption that capital would always be cheap.
Now the 5-year is at 5%. The 10-year is pushing higher. The Fed isn't blinking.
What does this mean?
• Zombie companies that survived on cheap debt? They're getting exposed.
• Growth stocks priced for perfection? The math doesn't work anymore when the discount rate doubles.
• Real estate, private equity, venture capital? All repricing downward.
• Your savings account? Finally paying you something.
This isn't a crisis. It's normalization. Rates at 5% aren't high — they're normal. We just forgot what normal looks like.
The question isn't whether rates will come down. The question is: can your portfolio survive in a world where capital actually costs something again?