New Delhi, July 20 -- Global financial markets are entering a prolonged phase of structurally higher borrowing costs, sustained investment in artificial intelligence (AI) and infrastructure, and elevated geopolitical risks, with investors increasingly positioning capital around these long-term trends, according to a Moody's Ratings cross-sector report.

The report, "A new macro regime is driving differentiated repricing across financial assets", said market pricing across bonds, equities, credit and commodities indicates that the post-2008 era of ultra-low interest rates and subdued inflation has given way to a fundamentally different macroeconomic environment.

"A common refrain is that financial markets are disconnected from the real ec...