Charles Schwab Unwinds the QE Trade
Rising interest rates are not good for bank earnings or bank equity valuations.
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The Institutional Risk Analyst
© 2003-2023 | Whalen Global Advisors LLC All Rights Reserved in All Media | ISSN 2692-1812
Banks | Markets | Fintech
R. Christopher Whalen
- Jun 12
- 5 min
Bank Deposits vs US Treasury Bills
Remember, for every $1 in debt redeemed on the books of the Fed, a bank deposit disappears.
1,893 views
R. Christopher Whalen
- Jun 5
- 2 min
The IRA Bank Book | Q2 2023 Industry Outlook
How much of book value do banks lose
as the Fed adjusts interest rates to fight inflation?
859 views
R. Christopher Whalen
- Mar 21
- 5 min
Winners & Losers in the New Gilded Age
Mark Twain called Washington ''the grand old benevolent National Asylum for the Helpless'' in his classic "The Gilded Age."
1,677 views
R. Christopher Whalen
- Nov 28, 2022
- 6 min
Is JPMorgan Chase Insolvent?
The US banking industry has been rendered insolvent by the Federal Open Market Committee
7,731 views
R. Christopher Whalen
- Nov 2, 2022
- 6 min
Terminal Rates & Conflicted Economists
The cult of ever falling interest rates goes back 50 years and spans the terms of Fed chairs back to Alan Greenspan and Paul Volcker...
696 views
R. Christopher Whalen
- Oct 24, 2022
- 3 min
AOCI: The Winter of Quantitative Easing
Little attention is being paid to the collateral damage being done by the FOMC to the debt capital markets
767 views
R. Christopher Whalen
- Sep 27, 2022
- 3 min
Short QE, Long Volatility
Until the FOMC raises interest rates to more “normal” levels, we don’t expect actual volatility to decline.
439 views
R. Christopher Whalen
- Jul 31, 2022
- 8 min
Short Collateral & Long Tantrums
Demand for risk-free collateral and liquidity is largely a function of how JPMorgan (JPM) CEO Jamie Dimon feels about risk on any given day
843 views
R. Christopher Whalen
- Jul 24, 2022
- 6 min
Questions for Chairman Powell
QE has created a gigantic interest rate mismatch across markets for banks, non-banks and other financial intermediaries including the GSEs
502 views
R. Christopher Whalen
- May 31, 2022
- 6 min
QT Means Short Credit Risk
Market risk realized today becomes credit risk tomorrow...
1,240 views
R. Christopher Whalen
- May 29, 2022
- 2 min
The IRA Bank Book | Outlook Q2 2022
The sharp rise in bank stocks in 2021 coincided with a surge in operating income due to COVID. Now we reverse that trend in 2022...
400 views
R. Christopher Whalen
- May 4, 2022
- 5 min
Interest Rates, Credit and MSRs
Even as Powell signals willingness to take interest rate targets higher, he has put off a decision on the Fed's balance sheet until June.
484 views
R. Christopher Whalen
- Apr 11, 2022
- 5 min
Weak Bank Earnings & Surging Interest Rates = Lower Valuations
Will Fed Chairman Jay Powell fold in terms of further rate hikes if the S&P 500 falls 1,000 points in a day?
491 views
R. Christopher Whalen
- Mar 21, 2022
- 6 min
Will SOFR Be the Death of Jay Powell?
If the Fed causes another liquidity crisis as it ends QE and shrinks the balance sheet, then Chairman Powell should immediately resign.
1,362 views
R. Christopher Whalen
- Mar 15, 2022
- 5 min
QE, Risk Premia and Option Adjusted Spreads
There a brisk debate ongoing in the fixed income markets over how much the Federal Open Market Committee will raise interest rates and when
857 views
R. Christopher Whalen
- Nov 15, 2021
- 4 min
As the Fed Ends QE, Stocks and Crypto Will Retreat
And in the meantime, we view the end of QE as a net negative for global stocks as well as crypto. Everything is correlated in a crowd.
1,142 views
R. Christopher Whalen
- Oct 12, 2021
- 6 min
Bank Earnings Setup: Rebound to 2020
Many of the better managed financials that we track have become sellers of assets rather than buyers in the past several months.
317 views
R. Christopher Whalen
- Sep 20, 2021
- 11 min
The IRA Bank Book | Q3 2021
In the Q3 2021 edition of The IRA Bank Book, we document the slow destruction of US bank asset and equity returns by the FOMC.
359 views
R. Christopher Whalen
- Aug 19, 2021
- 6 min
Fed Chairman Jay Powell as RobinHood
There is, after all, no free lunch for investors when the Fed is serving the thin meal of Financial Repression
513 views
Christopher Whalen
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