Big Banks, Brokerages, and Insurers Stand to Gain as Fed Rate Hikes Loom

Big banks like Bank of America could see net interest margins widen, boosting profits.

Higher rates widen net interest margins, boosting profits as seen in prior hiking cycles.

Insurers like Allstate can reinvest premiums into higher-yielding bonds as rates rise.

Big banks like JPMorgan Chase could see net interest margins widen, boosting profits.

Brokerages like LPL Financial can earn more on client cash held in short-term securities.

Higher rates allow Schwab to earn more on client cash held in short-term securities.

Insurers like Berkshire Hathaway can reinvest premiums into higher-yielding bonds as rates rise.