Morningstar lists stocks that benefit from rising interest rates

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A rise in interest rates is generally good for investment services firms such as money managers and brokerage firms.

That’s because the interest rates they pay on the cash they borrow generally don’t rise as fast as the rates they get on their fixed-income assets.

Additionally, clients at retail brokerages typically keep 5% to 20% of their account balances in cash, Susan Dziubinski, director of content for Morningstar.com, wrote in a commentary.

“The brokerage firm sweeps that cash into an affiliate bank, and that bank uses those cash deposits to make loans or to invest in fixed income securities. They [brokerages] may also earn asset management or distribution fees for client assets in money market funds.”

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