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 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 6
- 4 min
ACH: The Bank Deposit Ain't in the Mail
Was the breakdown of the normally stable and, indeed, routine workings of the Clearinghouse the result of bad actors?
1,145 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 24
- 5 min
QE Means Higher for Longer, But No Recession
We look for modest rate cuts in 2025, followed by an equally modest boom in mortgage lending
982 views
R. Christopher Whalen
- Oct 19
- 6 min
Are Bank Stocks Undervalued? Which Ones & Why
Large universal banks that ply the capital markets and use essentially infinite leverage in the derivatives markets face challenges
994 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 15
- 7 min
Bank Earnings Takeaways -- JPM, WFC and Citi
Bank earnings can be best described as cautiously mediocre, but as usual the Street proclaimed that three banks "beat the estimates"
712 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 11
- 3 min
Bank Industry Review & Survey Q3 2023
The US banking industry has seen now two consecutive down quarters for net income caused by the Fed’s massive open market operations
851 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
- Sep 1
- 6 min
Winter is Coming in Bank Credit
If a bank has 6% debt to assets, what is the equity of the parent BHC worth?
1,144 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 9
- 5 min
Update: Western Alliance Bancorp
With industry losses on every loan closed well north of 200 bp, you might ask yourself why WAL would still be buying conventional loans.
773 views
R. Christopher Whalen
- Aug 4
- 6 min
RITM Goes Multi Asset; TCBI Shrinks Assets, Grows Returns
TCBI needs to keep efficiency in the 50s if they want to survive the coming drought in mortgage lending.
419 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 28
- 5 min
Washington Trip Notes; Mr. Cooper & PennyMac Financial
The last Treasury Secretary that tried to extend the maturities of US government debt was Jack Lew (2013-2017). Yellen missed an opportunity
644 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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