Positioning for Rising Rates

Plus: Sculptor Capital Management, Maker DAO, Credit Suisse

We’re going deep into the mechanics of banking this week. When I launched Net Interest in May 2020, it was with the aim of discussing all aspects of the financial services industry. Since then, we’ve spent a lot of time looking at financial technology because it’s one of the most important agents of change in the industry. We’ve also explored how key segments of the industry work: investment banking, clearing, prime brokerage, private equity, hedge funds, mortgage lending. In between, we’ve analysed case studies, bringing to life the stories of companies like Citi, Wells Fargo and NuBank. 

One area we haven’t explored much is old-fashioned retail/commercial banking. And in particular, how this type of banking is impacted by interest rates. There’s a lot of confusion over how the industry responds to changes in rates, and with interest rates on their way back up, I thought this would be a useful topic to unravel.

If it’s not your bag, don’t worry! Next week, I’ll be back with a briefing …