Australian household debt as a percentage of household disposable income has more than doubled in the past decade reaching all time high’s, whilst the cash rate has more than halved to all time low’s during the same period. Even if there is another interest rate cut, it is clear that we are on the low end relative to history. Many investors have been sucked into the trap of looking for income above cash deposit rates in popular ‘blue chip’ or seemingly ‘safe’ companies such as banks, utilities and some property trusts. Unfortunately, the dividend yields of many of these leveraged companies may not be sustainable at higher interest rates, meaning those investors could face the prospect of real capital losses in the future.