Tag Archives: yield curve inversion

Is rising interest rate a sure-win for bank stocks?

By | April 30, 2018

Not necessarily. A headline news flash will almost always associate with rising interest rate with tailwind to bank stocks. But what is often missed is that banks’ profitability is associated with net interest margin: the yield they make lending long term subtract the short-term interest they are paying to their lenders (Fed or deposits etc.).… Read More »