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In the past decade, low-interest rates have benefited the FinTech industry tremendously. The sudden reversal in Fed policy, which has increased interest rates by about 400 basis points in only five months, with another 75-100 basis points anticipated in the upcoming two quarters, will significantly impact the FinTech sector. However, not all industries and business strategies within those industries will be affected in the same way or to the same extent. The two objectives are to:
Provide a framework for analyzing how rising rates and a struggling economy will affect the FinTech sector so that you can conduct your own assessment and strategize about the effects on your portfolio holdings.
Discuss how we anticipate rates will harm or benefit specific business lines across various FinTech sectors.