Financial Sector | Where There’s Smoke…
You know the old saying, where there’s smoke there’s fire. The Financial ETF (XLF) just lost 9.7% in the last 10 trading days. So when it comes to the financial sector of the stock market what is the smoke?
The smoke for financials is a higher than normal rise in certain interest rates that might signal financial distress. Recently the spread between the London Interbank Offered Rate (LIBOR) and Overnight Indexed Swap Rate (OIS) has been rising rapidly and now stands at the highest level since the Financial Crisis. Continue reading