Barclays has identified the European stocks that are most at risk of taking a hit to profits over rising interest payments for debt over the next two years.
During the coronavirus pandemic, central banks cut interest rates to historic lows, enabling companies to borrow debt at very favorable rates.
The table below shows the 10 stocks Barclays expects to have the biggest increase in interest costs through to 2025.
Since interest costs are integral to real estate business models, the impact on margins and profits could be much more severe, the bank's analysts said.
The Barclays team is confident that while interest rates can hurt company bottom lines, there was "scant" evidence that showed there was systemic risk.
Persons:
Fastighets Balder, Castellum, Vonovia, Matthew Joyce, Zoso Davies
Organizations:
Barclays, Premier, Whitbread, BASF, Dassault Systemes
Locations:
Swiss