As global interest rates remain elevated, the healthcare sector faces unique challenges and opportunities. The capital-intensive nature of healthcare, combined with its reliance on long-term borrowing, makes rising rates a critical consideration for healthcare providers, suppliers, and investors alike.

The insurance industry, a cornerstone of financial stability, is facing a rapidly shifting landscape as global interest rates climb. In the US, the Federal Reserve’s sustained monetary tightening has pushed borrowing costs to multi-decade highs. Meanwhile, in the UK, long-term borrowing costs have surged in January albeit they retreated somewhat mid-month. These dynamics present both opportunities for investment returns and challenges in managing liabilities and customer expectations.

The fourth quarter of 2024 has showcased robust financial performances among leading U.S. banks, reflecting a dynamic economic environment and strategic adaptability.

Of most relevance to CFO’s and Finance Leaders is their banks net interest margin income and how this impacts on corporations and US businesses. Higher net interest margins eat into the profits of their customers.