Operating at the Intersection of Technology and the Capital Markets
Tag: Bailouts
This week’s BTFP activity: The Bank Term Funding Program (BTFP, bail out/QE) had approximately $108.0 billion in outstanding loans as of Wednesday this week, up from $107.9 billion (+ $0.1 billion) a week ago. The “other credit extensions” line item of $133.4 billion includes the FDIC loans made to regional banks. This figure is down from $133.8 … Continue reading Weekly Update: Bank Term Funding Program
With $34 Billion in outstanding debt, it is only a matter of time before American Airlines (ticker: AAL), comes calling hat in hand for a bailout. AAL will require financial aid (a bailout or a very large equity offering), before 2026 debt maturities occur. The 2020-2021 COVID bailouts were not the answer to the bloated … Continue reading When Will American Airlines Be Bailed Out Next?
If you plan to run the credit risk exercise that I mentioned at a high level last week (HERE), the exercise is not a simple one. For example, if Company ABC issued a 5-Year note in August 2020 when the 5-Year Treasury was at 0.19% and credit spreads where at "Y", it would be incorrect … Continue reading Credit Spreads Will Widen The Longer The Fed Maintains Elevated Rates
Here is our weekly update on the Fed’s back door QE program, also known as the Bank Term Funding Program (BTFP), also known as a bank bailout program. The Bank Term Funding Program (BTFP, bail out/QE) had approximately $102.0 billion in outstanding loans as of Wednesday this week, down from $103.1 billion (- $1.1 billion) a week … Continue reading Weekly Update: Bank Term Funding Program
Here is our weekly update on the Fed's back door QE program, also known as the Bank Term Funding Program (BTFP), also known as a bank bailout program. The Bank Term Funding Program (BTFP, bail out/QE) had approximately $103.1 billion in outstanding loans as of Wednesday this week, up from $102.7 billion (+ $0.4 billion) a week … Continue reading Weekly Update: Bank Term Funding Program
End of LIBOR: Use of LIBOR has been slowly phased out in recent years and is set to end on Friday June 30th. The FCA will publish 1-, 3- and 6-month synthetic US dollar LIBOR settings until September 30th 2024. The Secured Overnight Financing Rate (SOFR) is replacing LIBOR in the US. What does this … Continue reading Friday Marks The End of LIBOR and The Fed Is A Perma-Dove
With or without further rate hikes by the Fed more bank failures are coming as is more consolidation. In a free market economy I would fully expect non-bank acquirers such as Apple and Amazon to step into the breach and build a financial services powerhouse. However, this FTC won't allow the large Tech players to … Continue reading Weekly Update: Bank Term Funding Program
The banking system is hardly strong despite Fed Chair Powell's comments this week to that end. When the Fed lifts its Fed Funds Rate in July (our guess), and again in August or September, we will very likely see a new rash of bank failures. Many will fail even if the Fed takes no rate … Continue reading Weekly Update: Bank Term Funding Program
The Bank Term Funding Program (BTFP, bail out/QE) had approximately $100.2 billion in outstanding loans as of Wednesday this week, up from $93.6 billion (+ $6.6 billion) a week ago. This banking crisis is not over. The “other credit extensions” line item of $185.2 billion includes the FDIC loans made to regional banks. This figure is down … Continue reading Weekly Update: Bank Term Funding Program
During a crisis (bookings down by as much as 80% for some Enterprise Technology companies), leaders act with imperfect information. A reactionary approach is never the optimal approach. We offer a 6-step plan. Vilfredo Pareto was an Italian engineer, sociologist, economist, political scientist, and philosopher. The "Pareto principle" - better known as the 80/20 rule … Continue reading A Common Sense Approach to Crisis Management. Leveraging A 6-Step Plan.
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