Bloomberg Surveillance · Tuesday, September 15, 2026
Harvey Schwartz of Carlyle believes rates will be structurally higher due to larger deficits and increased demand for capital globally, driven by de-globalization and security investments. He notes that current rates are not historically high and emphasizes disciplined capital deployment.
“We have for years now, for three years, been working under the assumption that rates would be structurally higher. Because deficits are larger. The demand for capital around. The world is very high.”
“De-globalization is really driving a complete reordering of priorities around the world in terms of how governments and companies think about economic growth. And these structural changes are not going away.”
“And when you think about the priorities that countries have, companies have around security, whether it's national defense in a traditional sense or investing in economic growth, data security, energy security, all of this investment requires durable capital. And with deficits being as large as they are, we would expect rates to be structurally higher. But on any relative basis, historically, they're really not that high.”