2min chapter

The Compound and Friends cover image

Catch a Falling Knife

The Compound and Friends

CHAPTER

Banks That Benefit From Rising Rates

Regional banks are more likely to benefit from a rise in interest rates. They don't face the same risks that some other banks do, where they had to pay higher deposit betas. Schwab has to worry about deposits fleeing as rates go up because there's this competition for where people are going to put their deposits.

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