Morgan Stanley: “While it’s no surprise banks have underperformed with 10 year yields so low, the magnitude of underperformance has been even worse than projected by the very powerful relationship. Using MS rates strategy team forecast for 10 year yields to be at 1.30% by June 2021 the change in y/y relative performance of banks would be dramatic as it moves from close to -40% today to +30% by June 2021. When combined with the fact that it’s almost impossible for y/y change in 10 year yields to get worse over the next 6-12 months, this makes banks/financials one of the best risk rewards left in an equity market that looks fairly picked over at this point, in our view.”