The Effect of the Cash Rate on Institutional Investors

The other thing I think we've been lazy around is looking at absolute returns rather than excess returns now that the cash rate is up to four or five per cent. What happens is that as those cash rates rise, institutional investors start asking themselves the same question. We've come across people who are in a multi-asset fund who said, if you think we're going to return five per annum over the next five years, why don't we just buy the two-year guilds? You can imagine there's a loud sort of sucking noise at the moment where risk capital is starting to go into risk-free capital. At some point, and it's very non-linear,