11 financial ideas for higher rates, but no Congressional action on regulation

|By:, SA News Editor

This just in: The banking sector is up just 1.5% this year after dropping more than 5% in March - the result of perky valuations combined with the realization that Dodd-Frank is going nowhere.

There's still plenty that can get done without Congressional approval, and KBW's Frederick Cannon has 11 cheaper valuation names that can benefit from higher rates and regulatory burden coming from the executive, not legislative branch.

First up are the universal banks, with Bank of America (NYSE:BAC) earning special mention from Cannon. Schwab (NYSE:SCHW) and SVB Financial (NASDAQ:SIVB) should also enjoy higher rates.

Then there's a list of value names selling for less than a 12x P/E ration: Goldman Sachs (NYSE:GS), Capital One (NYSE:COF), OM Asset Management (NYSE:OMAM), Ares Management (NYSE:ARES), Blackstone Mortgage (NYSE:BXMT), Hercules Capital (NASDAQ:HTGC), Lennar (NYSE:LEN), Principal Financial (NYSE:PFG), Hartford Financial (NYSE:HIG), and United Insurance (NASDAQ:UIHC).

Source: Barron's