HB Wealth says small caps stay resilient in Fed hiking cycle unless 10-year yields spike

• Homrich & Berg analysis flagged small-cap volatility risk if a Fed hiking cycle drives 10-year yields materially higher.
• Funding costs seen as the key transmission channel; median Russell 2000 WACC runs 54 bps above large caps, Bloomberg data showed.
• High yield spreads at 271 bps remained tight but have risen since August, a potential early warning for small caps.
• History showed small-cap outcomes track the 10-year: Russell 2000 fell 12% in the 2022 cycle as the 10-year rose 162 bps.
• Value historically led in the year after the first hike; energy outperformed in the past three cycles while real estate lagged.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Homrich & Berg Inc published the original content used to generate this news brief on September 17, 2026, and is solely responsible for the information contained therein.