What’s The Downside To Ameritrade If Fed’s Rate Hike Is Slower Than Expected?
There can be a 10% downside to our price estimate for Ameritrade if the Fed increases interest rates at a slower pace than expected, suppressing the net yield earned on its assets. This in turn may negatively affect interest earning balances by increasing the opportunity cost of holding money in financial institutions.
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Have more questions about Ameritrade? See the links below:
- What’s Ameritrade’s Revenue And EBITDA Breakdown In Terms Of Operating Segments?
- How Has Ameritrade’s Revenue Composition Changed Over The Past 5 Years?
- How Has Ameritrade’s Revenue & EBITDA Changed In The Last Five Years?
- What Is Ameritrade’s Fundamental Value Based On Expected 2016 Results?
- How Is Ameritrade Expected To Grow In The Next Five Years?
- How Important Is Net Interest On Assets For Ameritrade?
- What Led To Mixed Results In Ameritrade’s Revenue And EBITDA Growth In 2015?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Ameritrade.
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