Investors Move and Inflation Premiums

term: President-elect Donald Trump victory has spurred a steepening of the yield curve fueled by rising term and inflation premiums, as investors move to price-in both his fiscal policies and the vast amount of uncertainty surrounding them. function global function ad Code markets/article dimensions id 1 0 2 1 10 strategy targeting targeting Modifiers ; ; window ; Yield-curve steepening is conducive to an improvement in banks net interest margins, and therefore a boon for profitability, according to Bloomberg. Financial deregulation also looks to be on the agenda in a Trump administration, though the extent to which there a desire to dismantle the Dodd-Frank Act remains unclear. Source Bloomberg This ETF has stakes in major U.S. financial institutions, including banking behemoths like JPMorgan Chase & Co. and Citigroup Inc. This is a sign of both the Trump-inspired bullishness for the sector as well as the increase in the size and number of investors using ETFs to express opinions, said Eric Balchunas, an analyst of exchange-traded funds at Bloomberg Intelligence. Keep in mind these flows could come out just as easily if the narrative changes again. This is what it looks like when hot money gets excited. (news.financializer.com). As reported in the news.