Which actor benefits when interest rates go up?

When interest rates rise, new bonds issued will generally have higher coupon rates compared to existing bonds. As a result, an investor looking to buy bonds would benefit because they can purchase new bonds at these higher interest rates, leading to better yields on their investment. This is especially advantageous for investors who are positioning themselves in the bond market for future returns.

In contrast, a borrower with fixed-rate debt or a long-term bondholder may face negative impacts as their existing liabilities or investments become relatively less attractive. A short-seller in the bond market may see potential gains from rising interest rates, but this scenario is less direct and depends on various factors, including market timing and pricing fluctuations.

Therefore, the option of an investor who is about to buy bonds is the one that benefits from higher interest rates as it enables them to take advantage of the increased yields available in the market.