While rates are anticipated to rise on the short end of the yield curve, notes a recent Credit Suisse research report, don’t anticipate the long end to go along for the ride. The U.S. Financials report out Wednesday observes most investors are confident rates “will move meaningfully higher on the short end of the curve.” This will help stock valuations of retail brokers and banks, the report noted. Credit Suisse: Benefits of rising rate environment potentially priced into brokerage stocks The report concluded that commercial banks, retail brokers, trust banks, and life insurers are in the best position to capture…
Credit Suisse Models Stock Valuations Amid Higher and Flatter Yield Curve
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.