The Institutional Risk Analyst

If you figure that the seven year portion of the Treasury curve is around 4% today, a nearly 7% yield on EverBank's NDFI loan book seems pretty risky. But in fact the average yield on this loan category was over 10% for all 100 plus banks in Peer Group 1. So while EverBank certainly has a concentration in NDFI lending, it is not the highest yield. JPMorgan (JPM) was 5.9% in Q3, putting the House of Morgan in the 80th percentile of Peer Group 1. 

Once again, the management of TWO seems to have managed to destroy shareholder value in great bloody chunks. Given that the mortgage servicing rights of TWO had a book value of $2.4 billion at the end of Q4, it seems fair to ask whether the best trade for TWO shareholders is to vote against the merger with UWMC and simply sell the MSR. 

The equity of many banks traded off in January following Q4 2025 earnings. The earnings were not bad by any means, but some investors seemingly decided to take profits after a remarkable run in banks stocks going back to last October. 

Joe Otting does not seem to understand the value of the Flagstar correspondent lending and mortgage servicing business...

When you hear people talking about the Fed tapering QE next year, you know they are behind the proverbial curve.

Citigroup: Expanding Multiples, Flat Margins

The IRA is writing today from Camp Kotok, which is held each year at Leen’s Lodge in Grand Lake Stream, Maine. We are in Washington County, which is on the border of New Brunswick, Canada, and about 200 miles north of Bangor up Rt 9. This is Down East Maine, the land of Thoreau with rolling hills and lots of beautiful rivers and lakes.

May 22, 2017 | In this issue of The Institutional Risk Analyst, we speak to Sanjiv Das, CEO of Lonestar’s Caliber Home Loans, a home mortgage originator and servicer established in 2013 by the merger of Caliber Funding and Vericrest Financial. Prior to joining Caliber, Das served as Executive Vice President, Global Financial Solutions at First Data Corporation (NYSE:FDC), where he led the international business and played an instrumental role in taking the company public. H

April 6, 2017 | JPMorgan (JPM) boss Jamie Dimon says there’s something wrong with the US economy and he is obviously right. Here’s our short list: * too much public and private debt * too little income and growth * monopolies in banking and other industries * oppressive regulation for all businesses * political muddle and lack of national purpose * confused, irrational monetary policy A couple of weeks before Mr. Dimon was waxing effusive on the state of the American pol

New York --- Mohamed A. El-Erian’s day job is Chief Economic Adviser at Allianz, but he is also a key indicator – a canary -- for the financial establishment. In his latest post on Project Syndicate, “America’s Confidence Economy,” El-Erian states the obvious, namely that the financial bubble created by the election of Donald Trump is deflating. “[S]entiment is not always an accurate gauge of actual economic developments and prospects,” he says with considerable understatem