Professor. Speculator. Investor. Former Banker. Opinions are my own. Likes are not always endorsements. Fix the money, fix the world. #Bitcoin. ⚡️. 🟨⬛️
@optimayield Banks that primarily fund themselves with a sticky, loyal deposit base, as opposed to wholesale funding or hot deposits, are usually going to perform the best in a rising rate environment.
15 banks share SVB’s old risk mix.
Mostly uninsured deposits, long term assets and deposit costs that rose little with Fed rates. Cheap funding looks great until you have to replace it.
Software fell 27%, then rallied 49% from the low. Profit forecasts barely budged.
Investors changed their minds a lot more than analysts changed their numbers.
15 banks share SVB’s old risk mix.
Mostly uninsured deposits, long term assets and deposit costs that rose little with Fed rates. Cheap funding looks great until you have to replace it.
Software fell 27%, then rallied 49% from the low. Profit forecasts barely budged.
Investors changed their minds a lot more than analysts changed their numbers.
@MarioNawfal Then stop building @sama --- pretty simple. Don't sit around acting like this when you are one of those to blame for the end of civilization.
Banks lagged the S&P 500 on 18 of 21 days, then beat it on five of six through Oct 22.
If you own them, that change deserves attention alongside the crisis headlines.
Even after stripping out food and energy, producer inflation is 5.0%.
Core consumer inflation is 2.6%. Different baskets, but it’s hard to look at that and feel the job is done.
Waiting for cheaper oil is easier when you don’t have a refinery to keep running.
Physical Brent was still $11 a barrel above front-month futures on Oct 21.