As Rate Rise Looms, Watch Bank Portfolio Mix

As Credit Suisse eyes what they predict will be a September Fed interest rate increase, they consider bank portfolio positioning in anticipation of an event that typically doesn’t portend well for stocks.

Credit Suisse: Large bank portfolios saw 6 basis point decline, while mid-cap

Average yields generated from large-cap bank securities dropped again in the first quarter of 2015, down 6 basis points, while mid-cap bank portfolios saw a slightly better decline, only down 2 basis points on a quarter by quarter basis.

As deposit growth and outstripped loan growth and liquidity coverage ratios, which mandate the cash on hand relative to bank lending, have been...