The Institutional Risk Analyst

February 7, 2022 | Last week saw the start of the reporting season for publicly listed mortgage companies, with loanDepot (LDI) and...

We see a bright future ahead for the private label loan market....

Why does this bank exist? What market does it serve and how will it grow in the future?

Spreads have a long way to go before we return to the crisis levels of Q1 2020. And we are not nearly ready to go shopping.

The Powell FOMC has lost all credibility when it comes to financial markets or managing inflation and independence from the US Treasury

Bottom line, when a bank seems to be doing much better than other banks, there is usually a reason and that reason is almost always bad

In the short-run rising interest rates and spreads will help bank earnings. But where is the next credit hot spot?

We think the chart below from FRED is worth any amount of words on the impact of QE on equity market valuations.

As we move into Q4 2021 earnings, keep your eyes peeled for news of restructuring of urban commercial commercial and multifamily properties

Is SQ really, REALLY worth 25x book value? Our respectful answer to that question is no.

The SEC has finally decided to do the unthinkable, namely repudiate the admittedly fanciful idea of liquidity on demand at par.

We ask whether bank fundamentals are starting to catch up to the very full equity market valuations , up 40% since the end of 2020

any of the problems that the Fed now seeks to fix, starting with the unnecessary elimination of LIBOR, are a function of earlier policies...

Somehow the folks at UWMC did not take notice of the fact that secondary stock offerings for all issuers have basically disappeared

We all were perhaps a bit overly sanguine about the end of COVID as a global threat to personal and societal health

RJF is one of those quiet high-performer banks in the investment world that few understand but many own in LT portfolio

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.

To paraphrase our friend and fellow mortgage maven Rob Chrisman, ponder a 2022 lending market that’s 75% purchases and just 4.79 million uni

Over the next several years, as the economic cost of COVID becomes full visible, New York City may face its second financial crisis

When issuers like RKT and PFSI are paying up for servicing assets, you know that the secondary loan market is getting tougher by the day.