Yes, Tech got absolutely smoked…
Value now dragged down with Russia… given 2s10s Recession False Flags..& too aggressive Market Rate Hike Expectations…but we’ll get through Vol.. & the Fed acted decisively on “Inflation Expectations” .. Crushed it like a bug.. 5Y5Y at 2.74%
Value now dragged down with Russia… given 2s10s Recession False Flags..& too aggressive Market Rate Hike Expectations…but we’ll get through Vol.. & the Fed acted decisively on “Inflation Expectations” .. Crushed it like a bug.. 5Y5Y at 2.74%
https://twitter.com/gamesblazer06/status/1389954131134074887
I Stress out Banks 9 ways 2Sunday… I’m not stressed. Banks fundamentals getting stronger as we speak. They r printing Trading Revs/NII that more than fund AOCI burn..Regs now Understating Strength..Coz ~5 turns of tangible leverage & almost 2 turns of SLR r Cash Bound by LCR.
U don’t even have 2run a DCF/Residual Income model to tell u there’s tons of Buffer 4 Credit “Normalization” that’s gonna happen w CECL in 2H22…
Even quick look at Loan Loss Reserves tells u 4example $JPM has $20B in Reserves & $2B of NCOs
= 10x Coverage 👇
$XLF #Margin4Error
Even quick look at Loan Loss Reserves tells u 4example $JPM has $20B in Reserves & $2B of NCOs
= 10x Coverage 👇
$XLF #Margin4Error
Another way to look at it..2be Specific..Credit Cards are ~
> 1/2 of Reserves…where presumably most of the theoretical stress is gonna come from - eventually - coz Unsecured… has 6.73% Loan Loss Reserve Ratio & only 1.37% Net Charge Off Ratio -> 536bps of Buffer.👇
$JPM
> 1/2 of Reserves…where presumably most of the theoretical stress is gonna come from - eventually - coz Unsecured… has 6.73% Loan Loss Reserve Ratio & only 1.37% Net Charge Off Ratio -> 536bps of Buffer.👇
$JPM
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