Discover and read the best of Twitter Threads about #MarginForError
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Post Covid Banks…even after Releasing Reserves in 2021…built in 2020 through the P&L… still have 2x the amount of Reserves in the most potentially Stressed part of their Book.. aka Cards than 4Q19.. & their Card Customers have $2T+ of XS Savings.. that they never had before,
I love $XLF coz I love #MarginForError 
Truth be told we all suck at Economic Prognostications… u need #MarginForError for every investment.. & need to constantly ask yourself how badly will one get screwed if dead wrong.
$CS reports a €1.7B Loss..Delta v Street mainly coz of Litigation, Restructuring & AllFunds equity.. but Wealth weaker given lower Market Levels & Client De-Leveraging but Gross Margins steady 83bps.. Investment Bank -40% YoY, FICC -28% YoY, Equity Flat YoY, Cap Mkts -96% YoY
Swiss Universal Bank Rev +3% YoY driven by higher NII.. Credit remains Solid w an Asset Light Biz w only a small CHF96MM provision…High Yield small US$245MM MTM loss with exposure down to $5.9B..Solid 13.5% CET1 Capital & 6.1% Leverage Ratio…Liquidity is Off Charts w 191% LCR.
$CS tangible equity up +CHF1.3B QoQ despite loss… Tangible Equity has gone up every quarter since Archegos as the Balance Sheet continues to De-Lever.. Asset Light w Swiss Resi LTVs only 45%.. Tangible Leverage down another 1.5 turns to 18.0x Ex DTAs in 2Q22.
$CS
$CS
