The Institutional Risk Analyst

When interest rates eventually fall those late vintage mortgage loans with 6% coupons will evaporate like spring snow in the sunshine

Q: What happens to net-interest margin for banks when the rate of change in funding costs doubles or more in a single quarter?

Imagine how President Joe Biden will react if Chair Powell needs to announce formal limits on access to US bank deposits.

Until Chairman Powell comes clean with the Congress and the American people, more banks will inevitably fail.

Both PFSI and COOP are navigating the current market well, but we have questions about where the former is headed.

The Treasury and Fed cannot admit fault for fear of bringing the whole house of cards crashing down.

Banks that do not aggressively reprice liabilities and assets as OZK did in Q1 2023 may be left behind.

The funding crisis affecting US banks is not over and very definitely not limited to smaller banks.

The issue is not whether your bank is getting smaller, but whether credit expenses are being managed as funding costs inevitably rise.

Given that the US Treasury is paying 4% for 90-day T-bills, you can see how far banks have to go to become competitive on rates

The Fed by definition cannot make a profit and is always an expense to the Treasury, thus operating losses are a expense to the taxpayer

Most major banks grew larger during quantitative easing. Now many of these banks will shrink in terms of assets and also earnings in Q1 2023

At the Fed, because “confidence” is considered a factor in “policy,” it is OK to fib and obfuscate about the true cost of monetary policy.

We liked the NYCB + Flagstar story prior to the transaction with the FDIC for the assets and deposits of Signature Bank.

Treasury Secretary Janet Yellen and Fed Chairman Jerome Powell are another bank failure or two away from returning to the private sector.

Mark Twain called Washington ''the grand old benevolent National Asylum for the Helpless'' in his classic "The Gilded Age."

We recently added Western Alliance (WAL) and GHLD to our portfolio

By any reasonable standard, Janet Yellen should have already resigned, but not in the strange world of Washington.

Last week not a single member of the Big Media managed to ask Fed Chairman Jerome Powell about the state of the US banking system

Are nonbank mortgage firms a risk to Ginnie Mae? Or is it really the other way around?