Operating at the Intersection of Technology and the Capital Markets
Month: March 2023
The Bank Term Funding Program (BTFP) had approximately $64.4 billion in outstanding loans as of Wednesday this week. The “other credit extensions” line item of $180.1 billion includes the FDIC loans made to the regional banks over the past several weeks. March 2023 is the month the Fed reinstituted Quantitative Easing to the Capital Markets. FEDERAL RESERVE statistical … Continue reading Weekly Update: Bank Term Funding Program
The Fed allowed a modest amount of Treasuries and a larger position of Agency securities to run off its balance sheet the week ended March 29th 2023. However, when one considers the Fed’s bail out facility – the Bank Term Funding Program (BTFP) - it is clear we entered a period of Quantitative Easing (QE) … Continue reading The Fed’s Balance Sheet Reduction (QT) Update
We played with Google's conversational AI platform - Bard. Generally speaking, Bard's responses were fast and accurate, albeit high-level. Bard exceeded my expectations on the accuracy front. Speed was never an issue from my perspective. We posed a question to Google's Bard. The AI's response (below), did a fine job of covering the high level … Continue reading We Used Google’s Conversational AI Platform – Bard
It appears that a WWE transaction is around the corner. If I were a prospective buyer I would want to see what kind of numbers WWE does this weekend when it hosts its largest annual pay-per-view event -Wrestlemania - from Los Angeles. WWE shares sit at $89.32 as they have climbed from $84.08 on Friday … Continue reading A WWE Deal Appears Close
MSCI (ticker MSCI), and other FinTech vendors have got the "Governance" component of ESG all wrong. Good governance has nothing to do with identity politics and everything to do with ensuring that companies have highly qualified leadership in place at the Operating and Board levels. For example, MSCI's Governance scoring system (table below), captures zero … Continue reading Corporate Governance Is Everything
The Fed is already doing back door Quantitative Easing (QE) as a result of weakness in the Banking sector. What if CRE defaults were to accelerate? With high Office vacancy rates and $3.6 Trillion in CRE debt outstanding, there ought to be plenty more defaults in 2023. Earlier this month Blackstone defaulted on $562 million … Continue reading CRE Debt To Break The Fed?
Given that Tech layoffs have ramped higher each quarter since Q3 2021, I don't see how Tech is an investor safe haven. Q1 2023 is the worst quarter yet in terms of the number of employees laid off and it could get far worse from here as this credit crisis will be more severe than … Continue reading Tech Is No Safe Haven
Natural Gas is historically cheap. Demand is not going to zero. Therefore, it makes sense to consider owning some in your portfolio. You run the risk that Natural Gas prices may go sideways for a while. However, there is certainly more upside reward than downside risk. I can't say the same for equities, even for … Continue reading Natural Gas Is Historically Cheap
The Fed, Treasury and the FDIC are writing a check they can't cash. Based on their rhetoric, the three Government organizations have implied that they will backstop all bank deposits. It would be impossible for this unholy triumvirate to do so given the tab could be north of $15 Trillion at the extreme. MORE BANK … Continue reading A Full Bank Deposit Backstop Is Impossible
The Bank Term Funding Program (BTFP) had approximately $53.7 Billion in outstanding loans as of Wednesday this week. The “other credit extensions” line item of $179.8 billion includes the FDIC loans made to the regional banks over the past two weeks. FEDERAL RESERVE statistical release: https://www.federalreserve.gov/releases/h41/current/
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