The latest research suggests structurally higher real interest rates could influence asset allocation, product design and investment returns over the coming years.

Higher real interest rates may become a lasting feature of global markets rather than a temporary post-pandemic trend, according to a recent paper from State Street Global Advisors (State Street). Real interest rates have moved higher since 2022 as inflation has moderated  The paper, The Structural Rise in Real Interest Rates: Treasury premium erosion and asset allocation implications , examined the factors that could keep real rates above the levels seen in the decade following the glo