Most Recent

  • uploads///manufacturing at a glance
    Macroeconomic Analysis

    PMI Index: Component Growth Impacts Banks

    A growing economy definitely benefits the banking sector. The impact will be positive for big banks and also for regional banks.

    By Rekha Khandelwal, CFA
  • uploads///Chart
    Macroeconomic Analysis

    Rate Hike Expectations Propelled Financial Stocks Higher

    Many banks and financial service providers’ stocks rose on December 15. US investors picked the stocks with the expectation of the zero interest rate policy.

    By Renee Blakely
  • uploads///ratings banks
    Company & Industry Overviews

    Why Analysts Are Bullish on US Banks in the Face of a Fed Rate Hike

    With more than 50% buy ratings, analysts seem positive about the financial sector in the long term.

    By Rebecca Keats
  • uploads///Break up of Weekly Total Net Assets in Retail Money Market Funds
    Macroeconomic Analysis

    How Your Bond Mutual Fund Could Face Liquidity Risk—and Why

    Mutual funds currently own ~20% of outstanding corporate bonds—a gaining trend. Bond mutual funds thus have an increasing role in credit intermediation.

    By David Ashworth
  • uploads///manufacturing pmi
    Macroeconomic Analysis

    Manufacturing Expands at a Faster Rate, Drives Demand for Loans

    When manufacturing expands, it’s a positive indicator for overall economic growth. Generally, it results in positive GDP growth.

    By Rekha Khandelwal, CFA
  • uploads///daily treasury yield curve
    Macroeconomic Analysis

    Banks Set to Profit from Steepening Yield Curve

    The yield curve has steepened a bit compared to where it was a week or even a month ago. Investors should consider the yield curve slope an indicator of bank performance.

    By Rekha Khandelwal, CFA
  • uploads///net interest margin for all fdic insured institutions
    Macroeconomic Analysis

    Interest Rates : A Key Indicator for the Banking Sector

    When interest rates rise, banks typically increase the interest they charge for loans faster than what they pay on deposits. This gives an immediate boost to their margins.

    By Rekha Khandelwal, CFA
  • uploads///daily treasury yield curve
    Macroeconomic Analysis

    Why Does a Flattened Yield Curve Hurt Banks?

    Banks benefit from a steeper yield curve, which allows banks to lend on higher long-term rates and borrow on lower short-term rates. This boosts banks’ margins.

    By Rekha Khandelwal, CFA
  • uploads///Net Interest margins
    Macroeconomic Analysis

    Interest Rates Change: A Key Indicator for the Banking Sector

    Lower interest rates on a sustained basis have negatively impacted the performance of the US banking sector. Banks are not able to use much deposit pricing strategies to boost margins.

    By Rekha Khandelwal, CFA
    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.