Financial institutions benefit from higher equity risk premiums and interest rate spreads.

Charlene Vos

2017-04-01 06:40:00 Sat ET

With the current interest rate hike, large banks and insurance companies are likely to benefit from higher equity risk premiums and interest rate spreads.

Pre-crisis U.S. banks such as Goldman and Citigroup carry financial leverage as high as 35-to-1.

Meanwhile, these banks carry financial leverage about 10-to-1.

In this golden age of finance, it is likely for banks and insurance companies to lever up with robust operating profitability to 15-to-1 in light of post-Dodd-Frank deregulation under the Trump administration.

In this respect, financial stocks are likely to experience an imminent boom in stock market valuation.

The current Trump stock market rally bring tangible benefits to bank stocks that will likely receive preferential tax treatment in the form of both lower corporate income taxes and indefinite tax holidays for offshore cash repatriation.

As the current interest rate hike attracts capital inflows from non-U.S. economic regimes, this hot money will spur macroeconomic growth, corporate investment, and technological innovation with higher wages, better high-skill jobs, and more sustainable cash dividends, share repurchases, and capital gains for the typical stock market investor.


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

AYA fintech finbuzz analytic report on the global macro economic outlook Winter-Spring 2020

Andy Yeh Alpha

2020-02-02 11:32:00 Sunday ET

AYA fintech finbuzz analytic report on the global macro economic outlook Winter-Spring 2020

Our fintech finbuzz analytic report shines fresh light on the current global economic outlook. As of Winter-Spring 2020, the analytical report delves into t

+See More

Amazon faces E.U. antitrust scrutiny over the current e-commerce use of merchant data.

Olivia London

2019-08-16 17:37:00 Friday ET

Amazon faces E.U. antitrust scrutiny over the current e-commerce use of merchant data.

Amazon faces E.U. antitrust scrutiny over the current e-commerce use of merchant data. The European Commission probes into whether Amazon uses key third-par

+See More

Business leaders inspire teams to reach heights of both innovation and profitability with great corporate purpose.

Apple Boston

2020-08-26 10:33:00 Wednesday ET

Business leaders inspire teams to reach heights of both innovation and profitability with great corporate purpose.

Through purposeful leadership, senior managers inspire teams to reach heights of both innovation and profitability with great brand identity and customer lo

+See More

President Trump picks David Malpass to run the World Bank to curb international multilateralism.

Rose Prince

2019-02-07 07:25:00 Thursday ET

President Trump picks David Malpass to run the World Bank to curb international multilateralism.

President Trump picks David Malpass to run the World Bank to curb international multilateralism. The Trump administration seems to prefer bilateral negotiat

+See More

The global market for GLP-1 weight-loss medications can grow substantially to benefit more than 1 billion people worldwide by 2030.

Monica McNeil

2025-10-31 12:26:00 Friday ET

The global market for GLP-1 weight-loss medications can grow substantially to benefit more than 1 billion people worldwide by 2030.

With respect to wider weight loss treatment and obesity treatment, the global market for GLP-1 medications now grows substantially to benefit more than 1 bi

+See More

Successful founders focus on their continuous growth, passion, perseverance, and the collective wisdom of most team members.

Laura Hermes

2020-06-17 09:23:00 Wednesday ET

Successful founders focus on their continuous growth, passion, perseverance, and the collective wisdom of most team members.

Successful founders focus on their continuous growth, passion, perseverance, and the collective wisdom of most team members. William Ferguson (2013) &

+See More