The Institutional Risk Analyst

We noted in the most recent IRA Bank Book that the Q1 2025 banking industry data from the FDIC was showing improvement in certain commercial line items, particularly non-owner occupied real estate. But is this another head fake by desperate banks trying to conceal rancid commercial real estate exposures?

As of yesterday's close, BK was right behind SoFi Technology (SOFI) leading the bank surveillance group higher. BK closed yesterday at 14x forward earnings and 1.6x book value, roughly the same PE multiple as JPM but at a lower book value multiple.

If we told you that the Trump White House was planning to end the issuance of all agency MBS, how do you think this will impact financials?

President Trump is using the threat of tariffs to change the behavior of some of our trading partners, particularly Canada and Mexico. 

The risk-adjusted return on capital for BK is negative and probably lower than Goldman, the highest risk large US bank