Even though interest rates have been held near zero for an extended period, the financial sector rebounded significantly earlier this year as the economy gradually recovered on the back of solid progress on the COVID-19 vaccination front. In addition, following the Federal Reserve’s announcement yesterday, half of the United States Federal Reserve policymakers now expect to start raising interest rates next year, which should bode well for the financial sector. So, LDI and CURO could benefit.
LDI has declined 12.9% in price over the past month, while CURO has lost 1%. Also, in terms of the past six months’ performance, CURO is the clear winner with 9.5% gains versus LDI’s negative returns.