Financials sector

Banks borrow at short term rates and lend at long.
So they shoulf benefit from a normalisation of the yield curve.
Overall the FTSE World Financials Index is only up 3.2%, compared to the overal index up 8.5%.
The implosion of several US subprime mortgage lenders this year scared the market.
There are fears that institutions will have to mark down the value of subprime loans on their books.
Securitsed subprime mortgages are illiquid. If subprime assets are unsellable, traders might have to sell other assets.