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Fed Funds and Prime Rates Increase/Decrease

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Question: 
If Fed Funds and Libor Rates rise most likely the investment portfolio will go down? If Fed Funds and Prime rates rise most likely loan yields will increase?I just needed another opinion.
Answer: 

I do not believe that there necessarily has to be a direct correlation, if that is what you are asking. The statements are too general in nature to provide a specific answer. What type of investments, etc. Loan yields are a matter of pricing power and not solely the cost of funds.

First published on 01/13/2014

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