What’s happening in the banking industry today is far different than 2008. The banks have taken duration risk meaning the assets in the long run are very strong.

Think back to 2008, the word I kept hearing was Derivatives.

Derivatives are financial contracts, set between two or more parties, that derive their value from an underlying asset, group of assets, or benchmark.

There were bad loans with lipstick, cobbled together with A paper loans wrapped in Adjustable Rate Mortgages. Nothing good was going to come of that.

What we have today is an artifact of eased regulations, Fed hikes and Executive greed. The foundation of the Banking system is strong.

Rates continue to improve, get out there and show them who’s Boss.