Capex and the Yield Curve

The report analyzes the relationship between CAPEX types and the yield curve, noting that while 'new' CAPEX has been resistant to curve flattening, the equity market is beginning to show concern.

Key Takeaways

• 1.New capital expenditure (info processing, software, R&D) behaves independently of yield curve shapes, unlike traditional CAPEX.
• 2.The equity market is showing signs of vulnerability as the 5s/10s yield curve flattens.

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