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Bank Valuation: Understanding Key Ratios and Metrics

Tom Spencer

A higher ratio of fee income implies less traditional credit risk and less balance sheet usage (therefore higher ROE) but also implies greater market risk related to securities portfolios and potentially higher revenue volatility related to volatility in capital markets.

Metrics 88
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Steen Jakobsen: US Credit Cycle Peaked, Zero Growth Coming to Europe, Gold 1425 by Year End

MishTalk

Average Annual Inflation by Decade We need to stop talking deflation and using 1930s comparison on Fed hike. Central Bank Balance Sheets Excuse me? Hard even to see change in ECB balance sheet. Gold will be the best performer in commodity-led rally. We see 1425-1435 by year-end. Positive Gold and negative for US$?

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Kodak’s Downfall Wasn’t About Technology

Harvard Business

Sure, people print nostalgic books and holiday cards, but that volume pales in comparison to Kodak’s heyday. After all, they have many capabilities that entrants are racing to replicate, such as access to markets, technologies, and healthy balance sheets. Cameras went digital and then disappeared into cellphones.

Film 28
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Cash Flow Relief for Independent Consultants: the CARES Act & Other Ideas

Successful Independent Consulting

An accounting firm has published a good comparison chart of the two loan programs here. You’ll need to provide evidence of your qualifying status, such as 1099-MISC tax forms from your clients, and accounting statements like an income statement and/or balance sheet. x average monthly income).

Cash Flow 248
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ECB's €40bn Stimulus Gamble: ECB Pulls Out Bazooka, Cuts Rates, Buys Assets; Will this Stimulate Lending?

MishTalk

The newly decided measures, together with the targeted longer-term refinancing operations which will be conducted in two weeks, will have a sizeable impact on our balance sheet. In comparison with the June 2014 Eurosystem staff macroeconomic projections, the projection for inflation for 2014 has been revised downwards.

Banking 74
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Blockchain Could Make the Insurance Industry Much More Transparent

Harvard Business

Without this utmost good faith backed by hundreds of years of successful, albeit somewhat slow, claim payments, the global insurance industry would pale in comparison to the more than $5 trillion in premiums it garners today. Herein, as with all insurance, is where the concept of utmost good faith is laid bare.

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Shockingly Bad Fiscal Health of Chicago (and the Financial Engineering Chicago Uses to Hide that Fact)

MishTalk

For the sake of comparison, Chicago has around $7.2 It is not a balance sheet test, but a cash flow test. According to the Chicago Tribune , “since 2000, the city has used $3.6 billion in bond money to refund old debt as principal payments came due. Of that amount, half will end up costing taxpayers in the long run.”