HMD Chart, page-213

So tenuous though! I get that at some point inflationary pressures will lead to increased interest rates, but:

- the jitters are being driven out of the US
- price increase are at least partially being driven by supply chain shortages, which are not permanent
- even when inflationary pressure starts to become apparent here, the reserve bank has made it clear interest rates aren’t going up any time soon (both us and the US are still in a stimulus phase!)
- and the bit I really don’t understand, how does an increase in interest rate impact HMDs funding? I wasn’t aware of any bank issued debt, I thought their funding was all cash raised on market? I might be naive on this point, but what does the cash rate have to do with that?

I guess some more conservative investors will start to shift funds if cash has a higher yield than the historic low it’s sitting on today, but I can’t imagine many of those investors are in companies like HMD to begin with.

Just some idle thoughts.