Bank Stock Prices And Higher Interest Rates: Lessons From Bank Of America 1974

We want to thank our readers for the very strong response to our June 17, 2015 note “Bank Stock Prices and Higher Interest Rates: Lessons from History.”  For those readers who asked “Is the correlation between Treasury yields and bank stock prices negative at other maturities besides the 10 year maturity?” we include Appendix A.  Appendix A shows that for all 9 bank holding companies studied, there is negative correlation between the bank’s stock price and Treasuries for all maturities but two.

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