Investors have flocked back to the bank group over the last five months as the fundamental environment has improved and the election results in November added legs to the rally, according to KBW CEO Tom Michaud. In the episode, Michaud discussed improving investor sentiment toward the U.S. bank space, his firm's expectation for banks' earnings and credit quality in 2025 and 2026, and the outlook for capital raising and bank M&A activity.