Most ASX shares are hurt by rising interest rates, which is why it's important to look at the exceptions to this rule.
Australia's 10-year government bond yield climbed to around 5.19% on Tuesday.
That is its highest level in 15 years.
ANZ Group Holdings Ltd (ASX: ANZ) now expects the Reserve Bank to lift the cash rate to 4.60% in November.
A handful of listed businesses would quietly welcome that outcome.
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Why some ASX shares benefit from higher rates
The mechanism is simple and frequently overlooked.
Insurers and financial administrators hold enormous pools of other people's money between the day it arrives and the day it is paid out.
That money lies in cash and short-dated bonds, earning whatever the prevailing rate happens to be.
When rates rise, the income on those balances rises with them, while almost none of the cost base moves in sympathy.
1. QBE Insurance Group Ltd (ASX: QBE)
QBE is the clearest example on the local market.
The company's first-half result delivered adjusted net profit after tax of US$1,033 million, up 4%, with gross written premium rising 10% to US$15.1 billion.
The combined operating ratio held steady at 92.8% and return on equity reached 17.7%, comfortably above the company's medium-term target of 15%.
Management specifically flagged that an improving outlook for interest rates is expected to support investment returns.
The shares closed Monday at $22.48, up 4.51% over twelve months, on a price-to-earnings (P/E) ratio of 11.08 and a 5.06% yield.
Franking is only 30%, which matters a great deal for Australian income investors.
The interim dividend rose 6% to 33 cents per share.
2. Computershare Ltd (ASX: CPU)
Computershare earns margin income on the client balances it administers, which is the same mechanism.
FY26 revenue rose 4.6% to US$3,257.5 million and net profit after tax edged up 1.9% to US$618.7 million.
Employee Share Plans revenue grew 18%, Corporate Trust rose 9.6%, and Issuer Services added 7.7%.
The interesting part is in the outlook statement.
Management warned that margin income may be constrained by prevailing lower interest rates.
That guidance assumed rates were heading downward.
If bond yields at 15-year highs are telling us anything, the assumption now looks conservative.
The shares closed at $39.72 and have gained 18.54% so far this calendar year.
3. Medibank Private Ltd (ASX: MPL)
Medibank is the most defensive of the three.
Health insurers hold reserves against future claims, and those reserves earn more as yields rise.
FY26 underlying net profit after tax rose 2.9% to $636.8 million on revenue of $9,115.2 million, up 5.9%.
The fully-franked dividend increased 6.7% to 19.2 cents per share.
Chief executive David Koczkar was direct about the environment his customers are living in:
We continued to deliver value for the 6 million people who trust us with their health and wellbeing, as household budgets remain under pressure. Despite this, people continue to prioritise their health.
The shares closed at $4.81, down 3.61% over the year, on a fully-franked yield of 3.87%.
The risks facing these ASX shares
None of the three is a risk-free bet on interest rates.
QBE is an insurer, and a bad catastrophe season would overwhelm any investment income benefit.
Computershare's core revenue depends on corporate activity, which tends to slow when rates rise.
Medibank faces regulated premium increases and rising claims costs, and its FY27 guidance is only for margins broadly consistent with FY26.
In each case, higher rates help the investment line while pressuring the customer.
Foolish takeaway
The case for these three ASX shares is not that they escape higher rates.
It is that higher rates arrive on the revenue side of the income statement rather than the cost side.
QBE offers the most direct leverage and the highest yield.
Computershare has the most conservative guidance to beat.
Medibank is the steadiest and the slowest growing of the three.
If the Reserve Bank does move in November, these are the ASX shares I would look to own.
