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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (13188)	6/8/2012 9:26:33 AM
From: John Pitera	Read Replies (2) \| Respond to of 33421

Hi Elroy, the bread and butter money making operations of a bank work very well where you have a positive yield slope where the Banks having a funding desk/dept that get's funds in the best of all possible world at say 1 % and can buy 5 year treasuries at 4% and can buy 10 year notes at 7%. you have the positive cost of carry and also issue a few mortgages at the higher rates. A flat yield curve has hurt bank profit making abilities in some respects. John