The Yield Curve Flattens And Bank Stocks Plunge. Here’s The Connection – And The Prediction

in yieldcurve •  6 years ago 

The yield curve is about to invert and it is hurting the banks.

An inversion of the yield curve is when long term rates exceed short term rates. Banks make money by paying out short term rates and loaning at longer term. The difference is their profits.

Banks stocks have dropped along with the curve. The bond market is also responding in a similar fashion.

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