``Compared to 2008, global financial leverage has increased 40% to $100 trillion. This record leverage is manageable only because interest rates are historically low. Extreme high valuations of financial assets are supported by DCF models based on ultra-low interest rates. Higher interest rates will (1) undermine fundamentals, making record debt levels more problematic, and (2) deflate valuations of the anticipated future cash flow generated by equities, junk bonds, and sovereign debt. ''

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