Seeking Alpha

Life insurers and banks welcome higher rates

  • Up sharply as interest rates fly higher (the 10-year is up 15 basis points to 2.75%) are the life insurers - all of whom have had their investment returns more than a little constrained by puny yields. IAK +2.4%
  • MetLife (MET +5.9%), Prudential (PRU +4.5%), Lincoln National (LNC +6.8%), Hartford (HIG +3.1%).
  • Also set to benefit from a steeper yield curve (if we're to believe their models) are the banks, and they're leading the S&P 500 higher. The TBTFs: Bank of America (BAC +3.3%), JPMorgan (JPM +3.1%), CItigroup (C +3.3%), Wells Fargo (WFC +2.6%). The regionals (KRE +3.4%): Huntington (HBAN +2.6%), Regions (RF +4.2%), PNC (PNC +2.8%), FIfth Third (FITB +3.4%), First Niagara (FNFG +2%), Keycorp (KEY +3.5%), Zions (ZION +4.1%), Comerica (CMA +3.1%).
  • The XLF +1.9%.
  • FInancial sector ETFs: FAS, XLF, FAZ, UYG, KRE, KBE, VFH, IYF, KIE, SEF, IAT, IAI, IYG, IAK, FXO, PFI, KBWB, RKH, QABA, RWW, FINU, RYF, KRU, KBWR, PSCF, KBWP, KBWI, KRS, FINZ, FNCL
Comments (5)
  • BAHAMAS1
    , contributor
    Comments (2857) | Send Message
     
    Never mentioned AIG is UP OVER 3%
    8 Nov 2013, 11:04 AM Reply Like
  • al roman
    , contributor
    Comments (10131) | Send Message
     
    .25% away from whole sector changes.
    It worried me going down now it's worrying
    go up.
    8 Nov 2013, 11:21 AM Reply Like
  • tompte
    , contributor
    Comments (4) | Send Message
     
    WE live on soc sec and put part of our savings into a brokerage account. Our goal is to supplement our social security.
    8 Nov 2013, 12:16 PM Reply Like
  • al roman
    , contributor
    Comments (10131) | Send Message
     
    What a Crossroads to considered and the change come's in like a Thief.
    8 Nov 2013, 12:25 PM Reply Like
  • BAHAMAS1
    , contributor
    Comments (2857) | Send Message
     
    tompte-
    Good Luck to you and make sure your broker gives you a low commission and ONLY buy or sell with LIMIT ORDERS.
    9 Nov 2013, 06:04 PM Reply Like
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