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Name one company that will benefit and one company that suffer due to the fed raising...

Name one company that will benefit and one company that suffer due to the fed raising interest rates. What was the type of exposure that resulted in the profit or loss? Did the companies not hedge?

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Answer #1

JP Morgan Chase A banking company will be benefit from the Fed Raising interest Rates. It will be able to yeild more profit due to the high rate of interest charged by bank to the customers. It will build confidence in the market and stock price of the company will also increase.JP Morgan Chase is a Hedge Company.

Reality Income Corp. a Real estate based company will suffer due to High Interest rate charged by banks. High interest rates on the Housing Loan will reduce the Business Of real estate sector and reduce the demand. Reality Income is Hedge Company its More than 70% of Reality Income Corp is Owned by Hedged Fund.

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