‘Grotesque’ Leverage and Rising Rates Are Already Causing Damage, Says SocGen
- Lapthorne concerned about economic effects of debt volatility
- Repurchase forecast diverges from JPMorgan, BofA predictions
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The fear over 10-year U.S. Treasury yields breaking through 3 percent has been a long time coming, according to Societe Generale SA.
“Interest rates are already doing damage, people just haven’t noticed,” Andrew Lapthorne, the firm’s global head of quantitative strategy, said in an interview Tuesday. “Leverage in the U.S. is grotesque for this stage of the cycle. At the moment you’ve got peak leverage at peak prices. It’s not like you have to dig deep to find a problem.”