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Banks tend to do well when rates fall because they usually lower the yields on liabilities (such as deposits) faster than yields on assets (such as commercial loans).
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Part of the problem has been the combination of falling equity markets (lower assets) and lower bond yields (higher liabilities).
That's because the Fed is driving down interest rates, and as the rates on corporate bond yields fall, the liabilities for corporate pensions rise.
Nevertheless, the real yields on assets such as index-linked bonds, seen as the best match for a pension liability, are also very low.
"Yields on E.F.S.F.
Yields on these would rise.
Yet yields on these have risen, too.
Bond yields on Portuguese government debt soared.
As did yields on Portuguese debt.
Yields on Dutch debt have risen sharply.
Yields on food and cash crops plummeted.
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