To be sure, financial intermediaries and other creditors that extended loans or purchased securities in recent years at relatively low long-term interest rates will sustain capital losses as rates rise. In general, however, financial intermediaries are profitable and well-capitalized and appear to be well positioned to manage in a rising rate environment.
2  BIS Review 60/2004  the Middle East as well, including Russia, Venezuela, and Nigeria. Weather also has taken a toll, as recent hurricanes affected the production and distribution of oil on the U.S. Gulf Coast.