Credit Suisse Models Stock Valuations Amid Higher and Flatter Yield Curve

While rates are anticipated to rise on the short end of the yield curve, notes a recent Credit Suisse research report, don’t anticipate the long end to go along for the ride.

The U.S. Financials report out Wednesday observes most investors are confident rates “will move meaningfully higher on the short end of the curve.” This will help stock valuations of retail brokers and banks, the report noted.

Credit Suisse: Benefits of rising rate environment potentially priced into brokerage stocks

The report concluded that commercial banks, retail brokers, trust banks, and life insurers are in the best position to capture benefits of a simultaneous shift up in the...