Key beneficiaries Analysts recently flagged cash-rich companies as a beneficiary of higher interest rates.
It said that consumer services, software and semiconductor companies are among those likeliest to profit the most from higher interest.
"With higher interest rates, companies with robust balance sheets may be able to generate substantial amounts of interest income and surprise to the upside."
The higher the free cash flow yield, the better a company's position to meet its debt obligations.
A company with a high free cash flow is also able to access cash more quickly in the event of an emergency or opportunity.
Persons:
James Demmert, Jefferies, Morgan Stanley, BofA, — CNBC's Michael Bloom
Organizations:
Main, Research, Companies, ", CNBC Pro, Vertex Pharmaceuticals, Broadcom, German, Lufthansa, Honda Motor, Renault
Locations:
U.S