Shares of banks and other financial institutions fell, but not by as much as the broad market, as elevated interest rates looked set to boost profitability.
The yield on the two-year Treasury, a key benchmark, closed at the highest level since 2007. "Most of the [regional] banks we talk to are in a really good position right now after very stringent underwriting and testing going through the pandemic," said Derek Maupin, senior research analyst at mutual-fund firm Hodges Capital.
"Their credit is really solid, their allowance for loan losses is above average, and they're sitting on record levels of liquidity that can be put to work at higher interest rates."
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
08-30-22 1718ET
