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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. Visit [link] to learn more about wealth management and capital preservation strategies of Sitka Pacific.

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Kodak’s Downfall Wasn’t About Technology

Harvard Business

Today, the term increasingly serves as a corporate bogeyman that warns executives of the need to stand up and respond when disruptive developments encroach on their market. Sure, people print nostalgic books and holiday cards, but that volume pales in comparison to Kodak’s heyday. No strategy is static. Insight Center.

Film 28
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ECB's €40bn Stimulus Gamble: ECB Pulls Out Bazooka, Cuts Rates, Buys Assets; Will this Stimulate Lending?

MishTalk

This reflects the role of the ABS market in facilitating new credit flows to the economy and follows the intensification of preparatory work on this matter, as decided by the Governing Council in June. 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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Shockingly Bad Fiscal Health of Chicago (and the Financial Engineering Chicago Uses to Hide that Fact)

MishTalk

trillion muni market had puzzled at the true identity of Bond Girl, Hector Negroni, co-founder of New York-based investing firm Fundamental Credit Opportunities, said in a telephone interview. “ For the sake of comparison, Chicago has around $7.2 It is not a balance sheet test, but a cash flow test. The city has a very?—?well,

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Reflections on 2013; What's Important, What's Not? What's Ahead?

MishTalk

Had I suggested in 2007 that the Fed balance sheet expansion of $75 billion a month would have been considered "tightening" people would have thought I was nuts. A similar crash in public opinion awaits Bernanke for fueling one of the biggest, if not the biggest stock and bond market bubbles in history. Here we are.