The Institutional Risk Analyst

Simply stated, with T-bills trading significantly above the yield on RRPs, there is no reason for MMFs to leave cash at the Fed

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

Was the breakdown of the normally stable and, indeed, routine workings of the Clearinghouse the result of bad actors?

Regulatory skepticism about mortgage assets could effect financing rates for lenders, which means higher mortgage rates for consumers.

We look for modest rate cuts in 2025, followed by an equally modest boom in mortgage lending

Large universal banks that ply the capital markets and use essentially infinite leverage in the derivatives markets face challenges

Rising interest rates are not good for bank earnings or bank equity valuations.

Bank earnings can be best described as cautiously mediocre, but as usual the Street proclaimed that three banks "beat the estimates"

GS has the weakest position in terms of funding of the top-ten banks and no real narrative for the business post-Marcus.

The US banking industry has seen now two consecutive down quarters for net income caused by the Fed’s massive open market operations

When you are in a big crowd, nothing else matters.

Sadly for the bears in the audience, nothing would make the banks happier than if consumers would use more credit....

If a bank has 6% debt to assets, what is the equity of the parent BHC worth?

We continue to believe that combining Citi and GS may make sense in terms of consolidating two capital markets businesses

Our view is that China has been caught in a debt deflation for the past five years.

With industry losses on every loan closed well north of 200 bp, you might ask yourself why WAL would still be buying conventional loans.

TCBI needs to keep efficiency in the 50s if they want to survive the coming drought in mortgage lending.

S&P was the first to call out the growing lack of fiscal discipline in Washington, downgrading Uncle Sam in 2011

The last Treasury Secretary that tried to extend the maturities of US government debt was Jack Lew (2013-2017). Yellen missed an opportunity

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