Impart on increasing Interest rate on insurance company
Example:Allianz Malaysia Berhad









Bond Yield going up=Bond Price going down

As i know ,US Fed are going to increase interest rate few time this year,may be our BNM will be Follow.

My prediction=Their Equity Value going to tank so as their share price.

Case Study for incoming future interest rate up cycle in bank institution

Ideally Interest Rate Yield Curve


Bank makes a profit from the difference between Short Term and Long Term interest rates,also known as interest rate spread.
Bank borrow from pubic in the form of FD (Short Term) and lend out to the people (Car Loan,House Loan,Business Loan) Long Term.

Newly MY Interest Rate Yield Curve


As you can see from the above chart,when BNM decide to up BLR,all year yield should be up correspondence.
From the chart,3Y and 7Y Yield up the most.
There are some inverted yield curve between 7Y and 10Y
Ideally should be 10Y Yield >>> 7Y Yield

Summary
There are some potential risk to the economy in the short run.(Inverted Yield Curve Early Warning Sign)
Interest Rate Spread getting lower affecting future bank earning.
High interest Rate will cause non performing loans spike.
This is only first time BNM increasing BLR this year,i believe more to came in the future.

Thank for Reading.

Many people say buy bank stock when interest rate up rising.
It is wrong ,should be the buy bank stock when the interest spread going higher.Even Warren Sell their Bank Stock this year and bet big on oil counter.

For me,i hold same cash now while waiting opportunity to came.
Oil/commodity counter both should be at peak earning,i believe inflation should be peak as we move though interest up cycle.

Dialog>>Price Target=1.50
-Need more tanker storage for excess production.



Hibiscus >>Price Target=0.30-0.50
-If recession in 2023



In mean time,i am shorting in oil and nasdaq

SCO And SQQQ To the moon