The Institutional Risk Analyst

We hear in the channel that regulators are making their views of future loss probabilities very clear in guidance to the top banks

In this issue of The Institutional Risk Analyst, we speak to Mike Patterson, COO of Freedom Mortgage.

The Fed’s de facto embrace of inflation encourages misallocation of economic resources on a grand scale....

But nothing lasts forever in mortgage land or in financials. Stay tuned and pay attention to LT rates and spreads...

In other words, those residual claims on crypto issuers that have been trading at pennies on the dollar may have no value whatsoever.

The largest banks continue to serve as a haven for refugees from crypto fraud schemes and the fintech swoon, but are not cheap

Will Fannie Mae and Freddie Mac require another federal rescue in 2023 or beyond?

The US government now owns the largest reverse lender in the country.

Like most nonbanks (and Goldman Sachs is predominantly a nonbank), volumes are falling and funding costs are rising.

Many in the Buy Side chorus are looking forward to lower interest rates, but we are concerned that next year could really be about solvency

Since 2008, dollar swap spreads have traded below Treasury yields, suggesting a persistent demand for dollars coming from offshore.

Whether we are talking about corporate credit exposures or housing, the short trade may be the place to be over the next year.

Rapidly rising interest rates in Q3 2022 pushed down the tangible capital for the US banking industry to negative $1.9 trillion

Bankruptcy of Reverse Mortgage Funding may be first step in a systemic crisis affecting the government loan market

The US banking industry has been rendered insolvent by the Federal Open Market Committee

Despite all the hyperbole, the great crypto fraud was a small game, like the party poker that many crypto enthusiasts share in common

Is 2023 the year of the Return of the Distressed Loan Trade?

There are literally dozens of banks in the US made insolvent by the policy moves of the FOMC over the past year.

It seems obvious that the reported book value metrics coming from many commercial banks, REITs and mortgage banks are a tad inflated...

Crypto has gone from a sort-of juiced up equity strategy to a distressed credit story in just hours.