Big Bank earnings are rolling out this week, with Morgan Stanley ( MS ) and Bank of America ( BAC ) more than doubling in quarter four after a spike in dealmaking.

Mac Syke, Gabelli Funds portfolio manager, joins Morning Brief to discuss earnings season and the banks’ surge in quarter four.

Syke discusses the favorable environment for banks today. "We now have a normalized curve, so instead of the inversion [there is] a pretty normalized real rate," he explains. "We have regulations that are going to be easier, so that boosts M&A." Syke also adds that the "consumer activity has been very good."

Additionally, Syke points to how Bank of America's trading underperformed compared to rivals but says repricing of legacy investments is "going forward over the next several years" to boost net interest income.

Watch the video above to hear Syke's full insights on how these factors are shaping the future of Big Bank earnings.

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This post was written by Josh Lynch