Financial Industry 07 (Jul 18 - Dec 24)

[behappyalways]

How Silicon Valley Bank Collapsed in 36 Hours | What Went Wrong | WSJ
https://m.youtube.com/watch?v=QACGoKb48_0

[behappyalways]

On banking solvency

https://mobile.twitter.com/JackFarley96 ... 6516643856

[winston]

Nearly 200 banks at risk for same fate as SVB: study

By Matthew Sedacca

There are 186 banks across the country that could fail if half of their depositors quickly withdraw their funds, a new study published on the Social Science Research Network found.

Even insured depositors — those with $250,000 or less in the bank — could have problems getting their cash if these institutions face the sort of run that Silicon Valley saw a week ago.

The concern is that these banks hold a significant amount of their assets in interest-rate sensitive financial instruments like government bonds and mortgage backed securities. The value of those older, low-interest investments dropped sharply as the Federal Reserve hiked interest rates over the past year.

Source: NY Post

https://nypost.com/2023/03/18/nearly-20 ... did-study/

[winston]

Close to 190 banks could face Silicon Valley Bank's fate, according to a new study

by Swapna Venugopal Ramaswamy

186 more banks are at risk of failure even if only half of their depositors decide to withdraw their funds.

Source: USA TODAY

https://finance.yahoo.com/news/close-19 ... 17073.html

[winston]

ETFs To Play The Banking Situation

BY Matt Thalman

Financial Select Sector SPDR ETF (XLF) has almost $30 billion in assets

Vanguard Financials ETF (VFH), which has around $8 billion in assets.

SPDR S&P Bank ETF (KBE) and the Invesco KBW Bank ETF (KBWB) or the iShares U.S. Regional Banks ETF (IAT). Those two only invest in banks, as opposed to companies like Berkshire Hathaway or BlackRock which are both found in the top ten holdings of XLF and VFH.

Direxion Daily Financial Bull 3X ETF (FAS), the ProShares Ultra Financials ETF (UYG), the MicrosSectors U.S. Big Banks Index 3X Leveraged ETN (BNKU), or the Direxion Daily Regional Banks Bull 3X Shares ETF (DPST).

ProShares Short Financials ETF (SEF) and the 1X short ETF.

ProShares UltraShort Financials ETF (SKF) which will give you 2X short exposure.

Direxion Daily Financial Bear 3X Shares ETF (FAZ).

MicroSectors U.S. Big Banks Index 3X Inverse Leveraged ETN (BNKD), the only way for an investor to short just banks.

Source: ino.com

https://www.ino.com/blog/2023/03/etfs-t ... Bj7oHZByM8

[behappyalways]

坐拥5800亿资产，30亿被收购，瑞士信贷还有多少雷没爆？
https://m.youtube.com/watch?v=Ru50qh5tecU

[winston]

Singapore banks
Addressing AT1s

Following the reported regulatory action effecting the takeover of Credit Suisse (CS) by UBS, we seek to address key questions on investors’ minds.

We highlight that the write-off/conversion of CS’s AT1 securities are idiosyncratic and do not represent similar risks to SG banks.

Reiterate Neutral. Strong corporate governance and risk management underscore market confidence in SG banks but we see limited catalysts

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... A5679D3721

[winston]

Lower-risk banks in Asia amid global turmoil

We see the banks we cover as less risky, as we estimate US & EU bank and corporate bond exposures averaging <3% of FY23F book value (Fig 1).

We list in Fig 3 the many differences in the way ASEAN & China banks operate vs. small US banks which make the former lower-risk, in our view.

With possible contagion risk to non-financial sectors, we prefer banks whose re-rating are tied to ‘re-opening’ & recovering domestic consumption (Fig 4).

Within our bank sector coverage universe, our top three picks are China, Thailand (both re-opening plays) and Indonesia (rising ROEs).

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... A5679D3721

[winston]

Tempted to Buy Banks? Don't Catch a Falling Piano

How can we place an accurate value on any individual financial institution right now?

By ED PONSI

Why do investors feel the need to "bottom-fish"? We do it because everyone loves a bargain. It doesn't matter if it's a pair of shoes or a box of cereal, it feels good to buy something for less than its worth.

The problem is, how can we place an accurate value on any individual financial institution when there are potential systemic issues with the entire sector?

Until the extent of damage is clear, there's no worthwhile reason to buy U.S. Bancorp or any other names in the financial sector.

Source: The Street

https://realmoney.thestreet.com/investi ... _ven=YAHOO

[winston]

What History Says About All These Bank Failures

by Luke Lango

In response to the recent string of bank failures:

The U.S. government has said it will possibly provide insurance for all deposits over $250,000 at all banks if systemic risks emerge.

The U.S. central bank created an emergency funding facility for banks.

The Swiss central bank poured $50 billion into Credit Suisse.

Central banks across North America and Europe announced expansion of their collective emergency funding facilities.

The Bank of Canada has paused its rate-hike cycle.

The ECB has adopted a “wait-and-see” approach to its rate-hike cycle.

The Fed hiked interest rates by only 25 bps

The writing is on the wall, folks. Governments and central banks across the globe are swiftly riding to the rescue of troubled banks. Operation “Save the Banks” has begun. Operation “Save the Economy” has begun.

Source: Hypergrowth Investing