US Financial Stocks in Focus as Treasury Yields Rise

Rising US Treasury yields and renewed pressure from $100 oil are putting a spotlight on big US financial stocks. The Federal Reserve's next move is building expectations, and some large banks, insurers, and asset managers could see their balance sheets and interest rate sensitivity become more crucial. Blue Owl Capital, Live Oak Bancshares, and First Hawaiian are three large-cap US financial stocks that appear positioned to benefit from the current setup.

Blue Owl Capital, a New York-based alternative asset manager, provides permanent capital and private financing solutions to middle-market companies and real estate owners through direct lending, GP stakes, and net lease real estate strategies. Its balance sheet carries high debt, but rising US rates and strong demand for private lending are helpful for an asset manager whose fees and investor appetite can be sensitive to yields.

Live Oak Bancshares is a US bank holding company that focuses on lending and banking services for small businesses. Its model leans heavily on small business lending, fee income from government-guaranteed loans, and a growing digital offering. Recent earnings and changes in net profit margins provide data points on its current performance.

First Hawaiian is a long-established Hawaii-based bank that offers a full range of consumer and commercial services. It has attracted interest as a regional bank that can potentially benefit from higher US interest rates through wider net interest margins. Its stock has underperformed the broader US Banks sector, but recent quarters show revenue and earnings growth.