The cost of capital is finally climbing up. In fact, yields on corporate debt have now risen above the pre-pandemic highs, even though the Fed has only started to wind back its Covid-19 era stimulus measures. In the Euro area, the same dynamic in debt pricing overlays the policy environment in which the ECB is now set to increase rates. The unthinkable is starting to happen: Tracking deep sell-offs in tech stocks and high-yield debt markets, the start-up world has entered crisis management mode. In May, the Nasdaq posted its third-largest drawdown in two decades, while high-growth stocks within the…

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