Financials have been one of the best performers in the third quarter, but what lies ahead for bank stocks in the fourth quarter? Anton Schutz, president of Mendon Capital shared his sector views.
“The yield curve is already incredibly wide,” Schutz told CNBC.
“The banks have been huge owners of fixed rate instruments, so they can take advantage by selling. From a spread perspective, banks’ interest rate spreads are rising really nicely."
"They’re charging more to customers on new loans or refinance loans from a spread perspective," he added. "Deposit funding has been terrific for banks. Inflows in deposits have been good and deposit costs are very low.”
Schutz said financial winners long-term include Bank of America and JP Morgan Chase.
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No immediate information was available for Schutz or his firm.
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