How does a change in interest rates reach the companies you own?
From the 10-year Treasury yield to each company's implied coupon, maturities and operating income, using FRED and SEC figures for a dated example book.
Example as of 2026-10-07 (closing prices) · version 1 · eight real companies, illustrative share counts.
The 10-year Treasury yield was 5.28% on 2026-10-07, against 4.14% on 2025-10-07. Rates reach a company three ways: the cost of debt it must refinance, interest on floating debt, and the discount rate applied to its future cash flows.
Debt cost channel (latest 10-K)
| Holding | Interest expense | Long-term debt | Implied coupon | Maturing in 2 years | +100bp on maturities | As % of operating income |
|---|---|---|---|---|---|---|
| AAPL | Not reported | $90.68B | Not reported | $22.47B | $0.22B | 0.2% |
| MSFT | $3.05B | $40.29B | 7.6% | $9.25B | $0.09B | 0.1% |
| NVDA | $0.26B | $8.47B | 3.1% | Not reported | — | — |
| XOM | $0.60B | $23.10B | 2.6% | $2.50B | $0.03B | Not reported |
| PG | $0.88B | $22.84B | 3.8% | $8.58B | $0.09B | 0.4% |
| HD | $2.41B | $49.40B | 4.9% | $8.31B | $0.08B | 0.4% |
| DAL | Not reported | $13.31B | Not reported | $3.25B | $0.03B | 0.6% |
Worked example: PG
PROCTER & GAMBLE Co reported $0.88B of interest on $22.84B of long-term debt, an implied coupon of 3.8%. $8.58B matures over the next two years. Refinancing it 100bp higher adds $0.09B a year, 0.4% of operating income. Refinancing at today's 10-year alone, before any credit spread, is 1.44 pp above the implied coupon.
Banks (JPM) are excluded from this channel: interest expense is their cost of funding, not a financing burden, and their rate exposure runs through net interest margin.
Assumptions
- Share counts are illustrative; prices are the 2026-10-07 close; weights use market value.
- Company figures are the latest annual 10-K values in SEC XBRL; "Not reported" means the company does not tag that figure.
- Scenario returns and oil channel classifications are stated assumptions, not estimates.
Sources
- FRED DGS10: 10-year Treasury yield · as of 2026-10-07
- FRED DCOILWTICO: WTI crude · as of 2026-10-06
- SEC 10-K AAPL 0000320193-25-000079 · FY ending 2025-09-27
- SEC 10-K MSFT 0001193125-26-323660 · FY ending 2026-06-30
- SEC 10-K NVDA 0001045810-26-000021 · FY ending 2026-01-25
- SEC 10-K JPM 0001628280-26-008131 · FY ending 2025-12-31
- SEC 10-K XOM 0000034088-26-000045 · FY ending 2025-12-31
- SEC 10-K PG 0000080424-26-000103 · FY ending 2026-06-30
- SEC 10-K HD 0001628280-26-019436 · FY ending 2026-02-01
- SEC 10-K DAL 0000027904-26-000013 · FY ending 2025-12-31
- Daily closes: Polygon.io grouped daily bars, 2026-10-07
Apply this to your holdings
One holding per line as ticker, shares, price (for example AAPL,25,336.67). Your holdings stay in this browser, carry through checkout and reopen in Capital Command. Market Ontology Desk.