Considering the substantial increase in long term interest rates over the past four months, does this threaten utility stock values going forward? I see two negative issues: 1 - Utilities are big long term borrowers, and recycle debt, they pay little off. While interest costs factor into their approved rate structure, what is to stop state authorities from abrogating terms in the face of consumer backlash? We are seeing the effect of higher fuel costs hitting electric bills already. 2 - Utility stocks are used as income streams for retirees in particular. With long term fixed income yields bounding up, those instruments will be in direct competition with dividend stocks.
CryptoAlerta — análise de criptomoedas e mercado em tempo real