Financial institutions could be seeing a lift in their stock prices, BTIG's Dan Greenhaus said Friday.
"It's not just higher interest rates that are good for banks," he said. "It's a steepening of the curve that is generally good for interest rates because – obviously, '94, just to return off the top of my head here, that was a terrible time to be in banks, obviously, though interest rates were moving higher. What you want to see is a continuation of the yield curve steepening, which all else equal, is probably good for the banks."
On CNBC's "Fast Money," Greenhaus named two stocks that were poised to benefit.
"In particular, we think CNO Financial and The Bancorp, TBBK, are two areas that investors might want to look at with respect to being positively impacted by higher rates," he said.
Greenhaus reiterated his February call that the run in home builders had run its course.
"I don't think that the rise in interest rates is going to kill the housing recovery necessarily, but neither do I think that all else equal, I'd rather have a 5 percent mortgage rate than a 3 percent mortgage rate," he added.
Ahead of earnings season and the September meeting of the Federal Open Market Committee, Greenhaus backed a cautious stance.