The Traderszone Network

Published in TZ Latest News 20 September, 2014 by The TZ Newswire Staff

Rising Rates Help Insurance Portfolios

Financial stocks are starting to show upside leadership at the same time that bond yields are starting to rise. Banks usually benefit from rising bond yields because they can charge higher rates for their loans. Two other financial groups have actually done better than banks this week. They include investment services (brokers) and life insurance. Let’s start with life insurance. The black bars in Chart 1 show Prudential Financial (PRU) surging today to a new record high. It’s the strongest stock in that group.

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