Operating at the Intersection of Technology and the Capital Markets
Category: Insurance
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
The Fed modestly decreased its Treasury and mortgage-backed holdings during the week-ended Wednesday March 22nd. The Fed's Treasury position hardly moved. We will publish a separate article that reflects the Fed's bail out facility - the Bank Term Funding Program (BTFP). Treasuries: The Fed’s Treasury security holdings decreased by $812 million over the last week and … Continue reading The Fed’s Balance Sheet Reduction (QT) Update
I don't see the Fed taking a pause regarding further hiking of its Fed Funds rate. Heck, banks can borrow at 4.71% from the BTFP, which is a discount to the Discount Window. A 25 BPS hike is likely in the cards. As we wrote recently, the Fed must fight inflation. Commercial banks will help … Continue reading I Don’t See The Fed Pausing Wednesday
Americans fear for their bank deposits. Your deposits are safe. However, you should fear the remedy. The Fed bail out from last Sunday could result in $1-2 trillion of additional public debt assuming that the Fed marks up the assets of and extends loans to all U.S. banks except J.P. Morgan, Bank of America, Wells … Continue reading We’ve Got It All Wrong
Back in March 2019 we wrote about the future use of NLP-powered applications across various industries - in particular Financial Services (our 2019 TEK2day article HERE). Microsoft (MSFT) is bringing natural language capability to its Productivity suite - Microsoft 365. This natural language offering has a name: "Copilot". We include an example of Copilot deployed … Continue reading NLP & Productivity Apps: Microsoft Copilot
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I don't have first hand knowledge of how J.P. Morgan's PMs, Analysts, Traders and Investment Bankers may be using ChatGPT. However, there are a couple of inherent challenges as I see it: 1.) ChatGPT's knowledge repository is limited to the data sets it has access to. For example, if a Fixed Income PM runs a … Continue reading J.P. Morgan Limits Internal Use of ChatGPT
Norfolk Southern (ticker: NSC), shares have lost approximately 11% of their value since the February 3rd hazardous chemical train crash in East Palestine, Ohio. We recently wrote about the incident in detail in our article Show Norfolk Southern CEO Alan Shaw The Door. It would seem that NSC shares have significant downside risk from here … Continue reading Substantial Downside Risk To NSC Shares
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