Report
Greggory Warren, CFA
EUR 147.86 For Business Accounts Only

What Is the 10-Year Rate Telling Us?

Just a few weeks after the 2016 U.S. presidential election, the yield on U.S. 10-year Treasuries is up roughly 50 basis points as investors reassess their outlook for the country’s economic prospects. Data from the CME Group indicates a 93% probability that the Federal Reserve will raise its Fed Funds target by 25 basis points at the Dec. 14 meeting. Bank stocks have responded in dramatic fashion, in some cases exceeding our fair value estimates.
We note that relatively rate-insensitive names, s...
Underlying
Bank of New York Mellon Corporation

Bank of New York Mellon divides its businesses into two business segments, Investment Services and Investment Management. The company also has an Other segment, which includes the leasing portfolio, corporate treasury activities, derivatives and other trading activity, corporate and bank-owned life insurance, renewable energy investments and business exits. The company's two principal United States banking subsidiaries engage in trust and custody activities, investment management services, banking services and various securities-related activities. The company has four other United States bank and/or trust company subsidiaries concentrating on trust products and services across the United States.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Greggory Warren, CFA

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