Rising interest rates have been wreaking havoc across the sharemarket, but if there's one stock that should benefit from rising rates it's Computershare. The company holds client cash from a range of sources and in many cases it gets the interest – some of it fixed, but much of it floating up and down with interest rates.
Computershare's share price has therefore been following interest expectations higher (see chart).
In the six months to June, the company earned interest – aka margin income – of $US125 million ($180 million), more than double the $US62 million it managed in the preceding six months.
