Stocks, Interest Rates and Reverse RPs
Simply stated, with T-bills trading significantly above the yield on RRPs, there is no reason for MMFs to leave cash at the Fed
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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
- Nov 20
- 6 min
Yield Curve Normalization Good for Banks?
We think that doing nothing is a fool’s trade, to be blunt, because the next Treasury refunding could pull market yields sharply higher.
950 views
R. Christopher Whalen
- Nov 8
- 5 min
Update: Bank of America
If you conduct a fire sale analysis of BAC's balance sheet as of Q3 2023, the result more than wipes out the bank's tangible equity
1,055 views
R. Christopher Whalen
- Nov 1
- 6 min
Update: PennyMac Financial Services
If we are marking balance sheet assets to actual market in the age of deflation, what of the heavily modeled world of servicing assets?
476 views
R. Christopher Whalen
- Oct 30
- 4 min
Rate Peak Emerges, Deflation Looms
One of the effects of QE has been making many banks and real estate investors insolvent, a precursor to debt defaults.
1,484 views
R. Christopher Whalen
- Oct 26
- 9 min
Interest Rates, Fintech & MSRs
Regulatory skepticism about mortgage assets could effect financing rates for lenders, which means higher mortgage rates for consumers.
503 views
R. Christopher Whalen
- Oct 17
- 4 min
Charles Schwab Unwinds the QE Trade
Rising interest rates are not good for bank earnings or bank equity valuations.
1,479 views
R. Christopher Whalen
- Oct 11
- 6 min
Jerome Powell's Silent Crisis
The Powell Fed needs to drop short-term interest rates back down to 4% and leave them there indefinitely.
1,453 views
R. Christopher Whalen
- Oct 2
- 6 min
Credit Suisse\UBS to Apollo: Bye, Bye
UBS ultimately seems intent upon running off the remaining US mortgage assets, including a few billion in Ginnie Mae MSR financings
829 views
R. Christopher Whalen
- Sep 27
- 9 min
SoftBank as Systemic Event; Update: Charles Schwab & Co
The public behavior and decision-making processes of SoftBank suggest that the organization is in trouble.
1,263 views
R. Christopher Whalen
- Sep 25
- 6 min
Will Fannie Mae & Freddie Mac Raise Guarantee Fees?
With a 75bp average total gfee, would the market for private label MBS return? Or would conventional lending volumes simply crater?
870 views
R. Christopher Whalen
- Sep 21
- 6 min
FSOC Frets About Nonbank Risk; Goldman Sachs Stepping Back?
GS has the weakest position in terms of funding of the top-ten banks and no real narrative for the business post-Marcus.
587 views
R. Christopher Whalen
- Sep 7
- 5 min
Markets Affirm the Unbearable Lightness of Fintech
When you are in a big crowd, nothing else matters.
620 views
R. Christopher Whalen
- Sep 5
- 6 min
Consumer Credit Collapsing? Not Yet...
Sadly for the bears in the audience, nothing would make the banks happier than if consumers would use more credit....
1,045 views
R. Christopher Whalen
- Aug 23
- 6 min
Update: Goldman Sachs + Citigroup; Interest Rates Higher Longer?
We continue to believe that combining Citi and GS may make sense in terms of consolidating two capital markets businesses
628 views
R. Christopher Whalen
- Aug 22
- 8 min
China's Debt Crisis Accelerates
Our view is that China has been caught in a debt deflation for the past five years.
1,379 views
R. Christopher Whalen
- Aug 7
- 6 min
Biden Administration Staggers Toward a Debt Default
Whether we have Donald Trump or Joe Biden in the White House next Christmas, the US seems to be on a trajectory to a financial crisis...
1,912 views
R. Christopher Whalen
- Aug 2
- 5 min
Fitch Downgrades US to AA+; Fintech Stocks Soar on Powell Inflation
S&P was the first to call out the growing lack of fiscal discipline in Washington, downgrading Uncle Sam in 2011
692 views
R. Christopher Whalen
- Jul 25
- 5 min
Losses Mount Due to FOMC Policy "Tax"
Inflation is called a “hidden tax,” but lately the tax is not even barely concealed.
1,275 views
R. Christopher Whalen
- Jul 24
- 7 min
Why is JPMorgan So Big? Double Leverage
So when we ask why large banks are so big, the answer is that the Federal Reserve Board allows large BHCs to use more leverage
787 views
Christopher Whalen
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