Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Why It’s Time for Financial Stocks To Shine: (XLF)

TedTed
edited July 2018 in The Bullpen
FYI: It's generally acknowledged that banks benefit from a steeper yield curve. That's because they borrow capital short term and lend long term, which means they earn more as the gap between the two widens, and vice versa.

For evidence, look no further than the Financial Select Sector SPDR ETF (XLF), which has dropped 5% this year as the difference between the yields on the 10-year and two-year Treasuries narrowed to 0.28 percentage point from 0.54 at the beginning of the year.
Regards,
Ted
https://www.barrons.com/articles/why-its-time-for-financial-stocks-to-shine-1530818457?mod=hp_RTA&mod=article_inline&mod=hp_highlight_3
Sign In or Register to comment.