STOCK MARKET WATCH -- Friday, 23 January 2015

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10. US Banks Have Resigned Themselves To Lower Yields For Longer

http://www.businessinsider.com/r-us-banks-resign-themselves-to-lower-yields-for-longer-2015-1

NEW YORK (Reuters) - U.S. banks, after spending much of the last year bracing themselves for higher bond yields, are now resigning themselves to at least another few quarters of low rates, executives and analysts said.

Banks including Wells Fargo & Co and PNC Financial Services Group are contemplating steps like investing their extra cash at current low yields or using derivatives that pay off if rates stay low.

"We are seeing more management teams acknowledging the prospect and reality that we remain in a lower for longer [interest-rate] environment," said Christopher Lee, a portfolio manager who specializes in financial companies at Fidelity Investments, which has $1.15 trillion invested in stocks across the world, in an e-mail.

Lee added in a telephone interview that "over time, you've got to throw the towel in" if the benefits of rising rates keep failing to materialize.



Read more: http://www.businessinsider.com/r-us-banks-resign-themselves-to-lower-yields-for-longer-2015-1#ixzz3Pe5Q0XL5