Part 4/11:

A key factor influencing banking trends is the surge in the U.S. Treasury yield—up approximately 400 basis points in a year—representing a seismic shift in the return on safe assets. Investment banks, which derive significant revenue from mergers and acquisitions (M&A) and fee-based activities, have seen a slowdown in these areas, leading to consolidation within the industry. Meanwhile, larger consumer-oriented banks have fared better, with widened net interest margins helping to offset declines in fee income.