Companies That Benefit From Rising Interest Rates - Brokers

Feb. 06, 2022 8:16 AM ETHOOD, CME, SCHW7 Comments

Summary

  • As we look around to try to work out who is going to benefit from rising interest rates, think of brokers.
  • Financial market brokers, Robinhood, Schwab, CME Group, the market structure is such that they will benefit.
  • The trick is that interest, earnings, from client deposits belong to the company, not the client.

Stock Trading Platform Robinhood Goes Public On The New York Stock Exchange

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Who benefits from rising interest rates?

There are a number of candidates for those who should benefit from rising interest rates. Banks, just as the one example, which I'll deal with in another article - low interest rates compress, so higher decompress, interest

This article was written by

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Tim Worstall is a wholesaler of rare earth metals and one of the global experts in the metal scandium. He is also a Fellow at the Adam Smith Inst in London and an writer for a number of media outlets, including The Times (London), Telegraph, The Register and even, very occasionally indeed, for the WSJ. This account is linked with that of Mohamad Machine-Chian: https://seekingalpha.com/user/52914142/comments

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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