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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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Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation?

MishTalk

China Financial Markets. Financial Sense. Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation? Fed Balance Sheet vs. Stock Market. The risk premiums of risky securities have become unsustainably compressed in the process, and the Feds balance sheet has metastasized to $3.5 Daily Bell.

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The age old tale of financial crises

Tom Spencer

The story of the 2008 financial crisis begins somewhere shortly after the death of Jesus Christ himself. Not 33 years after Christ’s passing did Emperor Tiberius of the Roman Empire have to rescue his constituents’ financial sanctity through the age-old process of quantitative easing. This same tale has repeated time and time again.

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Millennials Mired in "Wealth Gap" as Older Americans Gain; Housing Crash Continues to Overshadow Young Families' Balance Sheets

MishTalk

Thanks to Fed printing presses coupled with an extreme case of irrational exuberance, those over 40 years old have recovered losses from the great financial collapse. The average value of housing on young families’ balance sheets remains about 35 percent below its 2007 level, the St. Meanwhile, 71.3 Louis Fed paper estimates.

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Fed Openly Discusses "Permanently High Balance Sheet"; Lie Finally Admitted

MishTalk

Merits of Not Shrinking the Balloon When the Fed first launched QE, they stated they had the "tools" necessary to shrink their ballooning balance sheet. Once the Federal Reserve lifts interest rates from near zero, likely this week, the focus will turn to the other legacy of the crisis-era policies: the Fed's swollen balance sheet.

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Financial Engineering Chart of the Day: Fed Balance Sheet vs. S&P 500

MishTalk

Fed Balance Sheet vs. S&P 500 I was playing around with some ideas on the St Louis Fed "Fred" database and came up with this. Mike "Mish" Shedlock Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management.

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Equity Research: Understanding the Role of Stock Analysts

Tom Spencer

Understanding Equity Research The role of an equity researcher is to analyze financial data, industry trends, and other information to create detailed reports on specific companies or sectors. One of the key responsibilities of an equity researcher is to conduct financial analysis.