Chris, it's unlikely for rate hikes to benefit banks, in general, since bonds they own (and, typically, they own a lot) will be worth less than previously. Asset-to-liability ratios thus suffer.
Depends on the bank, of course, and on other factors.
Oil companies not so much: those that pay a dividend would have greater competition from the higher yielding bonds. It would cost them more to borrow, as well, obviously. Here's the catch: if the price of oil continues higher, rate hikes might not matter as much for the oil companies. This is just my opinion, Chris. I'm not an investment advisor.
Will banks and oil companies see the greatest benefit of more rate hikes?
Chris, it's unlikely for rate hikes to benefit banks, in general, since bonds they own (and, typically, they own a lot) will be worth less than previously. Asset-to-liability ratios thus suffer.
Depends on the bank, of course, and on other factors.
Oil companies not so much: those that pay a dividend would have greater competition from the higher yielding bonds. It would cost them more to borrow, as well, obviously. Here's the catch: if the price of oil continues higher, rate hikes might not matter as much for the oil companies. This is just my opinion, Chris. I'm not an investment advisor.