Since the US election, the ASX has rallied +4%, but strong gains in financials, energy and materials have been offset by losses in the “bond proxy” sectors of listed property, utilities and telecoms. The biggest question facing equity investors now isn’t so much rising bond yields, but rather the trajectory of this rise. We do not see a 1994-style bond yield spike, such as what occurred after the US Federal Reserve raised rates from 3% to 6% in a 12-month period starting February 1994. That move saw Australian 10-year bond yields rise from 6.4% to 10.7%, and the ASX falling -8%. Rather we see Australian equities avoiding significant falls and weathering a slow grind up in bond yields, as corporate earnings improve through 2017. In this wire we look at three types of companies that should perform in this scenario, and provide an overview of one company that we think will be the biggest beneficiary from rising bond yields on the ASX.