This is Bloomberg Business Wait inside from the reporters and editors who bring you America's most trusted business magazine, plus global business, finance and tech news. The Bloomberg Business Week Podcast with Carol Messer and Tim Stenebeck from Bloomberg Radio.
Jinny's talking about Vava's Brian moynihan profit topping estimates on trading net interest income that he had Goldman Tim profit slumping thirty three percent, the company CEO David Salin pleading patients.
We know, we talked.
About it with Shri yesterday. Sweat Arajan just some of the changes that that company is undergoing.
Well, let's get to our big bank round up with us on the highlights and low lights of today's reporting. We got Bloomberg News America's finance team leader in our Bloomberg Interactive Brokers studio, Sally Bakewell with us. Also with us as Cheryl Angelo, Capital senior portfolio manager involved in managing several financial strategies, joins us on zoom in Atlanta. Sally, give us your big takeaways. Where do you want to start?
So?
I think, yeah, the Bank of America had a pretty good quarter by many metrics. Overall profit and net interest income topped estimates. It did better than expected in investment banking, you know, despite the persistent deal slump, and it did way better by a long way in trading because the bank has actually, you know, spent a lot of time in investment, in expanding its balance sheet and taking on more clients in its trading business. But Goldman it was
a bit of a different kettle of fish. Profit fell, it was hit by another quarter of real estate write offs, and of course it was impacted by sluggish investment banking,
even though trading was better than expected. What was interesting is both banks sort of steered clear of you know, making very decisive comments about when investment banking might bounce back, which they have done in previous quarters, perhaps indicating that those green shoots in investment banking they had long talked about and might be pushed sort of further back on.
The Hurican Stock's not going to come out and save investment banking, probably not.
Even though they should do, given you know, the wonderful sandals that I own. But yeah, I think with the geopolitical concerns, and we know Jamie Diamond referenced those on Friday. He said it is. You know, this is one of the most dangerous times in history. So I think that's a big cloud over the investment banking.
As we and we know Golvin Saxton about one point seven percent b of actually up about two and a quarter percent. I want to bring in Cheryl Page. She's angel O Capital senior portfolio manager involved in the managing of several financial strategies at the firm. She's on Zoom in Atlanta. So Cheryl, come on in. You know, it's interesting and I'm just curious. As Sally went through the two big banks that reported today, we've heard from a lot of the big banks, certainly last week as well.
Is there anything that you've been hearing that's actionable for you in terms of investing.
Yeah.
I think what we've seen thus far this earning season has been outperformance relative to expectations, and I think across the board we're seeing beats on ANII and better than expected credit quality, which really have been the two points of concern as we look at bank fundamentals where to
deposit betas go from here? They typically don't. They typically continue to rise until a couple quarters past the last rate hike, and credit quality has been something we've been expecting to normalize for quite some time, so we're encouraged with results. We're seeing less normalization less quickly than we would have anticipated, and a lot of levers that banks are able to pull in terms of continuing to drive
higher ANII than expected. So what we really take away from this, I think is the business models that work probably best in this environment tend to skew towards the large cap banks where we have a bit of a balance between a really strong consumer still and then on the smaller side of the spectrum, where community banks may be the only bank in town and continue to benefit
from deposit flow stabilization. So we sort of like a Barbelle approach here, and we would be most concerned at the margin at some of the regional banks that ski relatively higher on commercial real estate and office cre in particular.
What about Sheryl investment banking? When do you see investment banking bouncing back?
I think that is a difficult one. It clearly we have seen better results than anticipated, but still down pretty heavily year over year, and it's difficult to see when that turn may happen. But one of the things that we do expect will start to accelerate as we move into twenty twenty four. Is M and A and particularly
in the banking sector. I think there's a lot of focus that will be put on expense reduction, and M and A is a way to achieve that, particularly in the banking sector, and that could drive some higher investment banking fees as we move into calendar twenty twenty four.
Sal you want to come back into in terms of we got you know, obviously we heard from JP Moore again and City last week. We've really been kind of waiting to hear from these guys to see what they have to say and women about what they have to say about the health of the banking sector. Is there kind of a theme, a trend line. I know they're not all apples to apples.
Yeah, I think the trend line the theme is that so JP Morgan and City they did see charge offs increase, but they are still low compared to historic levels. And as we heard from Bank of America, it was a similar thing today. Charge offs ticked up, but as we heard from Brian moynihan, the consumer remains healthy, although spending
is starting to slow. So again it's a sort of ominous cloud that things are starting to deteriorate a little bit, but they're not quite reaching kind of pre pandemic levels yet.
When you say not quite reaching pre pandemic levels, would that be a good thing because it's a normalization or would that be frowned upon?
I think it would probably be. Well, then there probably be a good thing in the sense that they'd be coming back to sort of a no one wants sort of credit charge offs or right downs. But I think if they're you know, if they're bouncing off historic lows, it's less a thing to worry about.
No, and yeah, that makes a lot of sense, right, but it is right we try to figure out kind of what's normal coming off the pandemic and then in comparison to where we were pre pandemic. Cheryl, I asked you about actionable Is there names and remind us of your strategy because if what I remember, it's a credit or debt play as well as an equity play. But is there is there anything actionable off of the round of earnings that we've heard from the financial space for you specifically, Yeah.
And again it's still a little early in the earning season. We are encouraged by way what we've seen so far. Our strategies tend to be more credit focused and more focused on sort of that smaller end of the cohort fifty billion in below, where we do see actually quite a compelling risk reward opportunity. Given the dislocation in the banking sector that still hasn't fully recovered from the volatility
back in March. We're able to source in the markets today equity like returns for fixed income investments, and so that's where we've been deploying the bulk of our dry powder, frankly, in this environment. On the bank, back of what we've seen thus far this earning season, most actionable for me, I think the ones that really are the standout banks thus far, I would I would highlight JP Morgan and
Wells Fargo. JP Morgan continues to beat and raise the fourth increase this year on NII and a lot of benefit obviously from First Republic as well helping out in the results. And then on the Wells Fargo side, really a lot of excess capital and still some lovers to pull on the expense side. So I think that's where we would see the most upside thus far this recording season, surely.
I think for Bank of America it's been a bit of an outlier, largely because of its unrealized bond losses, and the bank has been sort of a lot of pains to say that it will likely, it's very unlikely to need to sell sell these. They'll be held to maturity. They have plenty of liquidity. Anyway. I just wonder what's your perspective on the fact that those unrealized loss and losses did widen in the third culture and they absolutely dwarf those of you know, the biggest US bank, JP Morgan.
Yeah, I think that has been the point of debate clearly on the stock and you know, given the yields and the bond portfolio has been an area of concern. I think when we look at sort of capital accretion that has taken place and the fact that the portfolio gets shorter and you see maturities coming through, there's a way to sort of earn through this. And I think that was the takeaway that I had from today, But it remains a little outsized relative to peer group.
Well, a great roundup by both of you, so appreciated. Bloomberg News America's finance team leader who I guess is getting no sleep right now, Sally.
Bank, Well, because.
It's like not early I know, right, it's just like it's like a.
Major it's quotly sleep deprivation.
Here in our Bloomberg Interactive Broker Studio and our thanks again to Sheryl Pate out there on zoom in Atlanta. She's Angel Oak Capital, senior portfolio manager and as we mentioned, you know, managing several financial strategies, but she said, really involved in the credit side of things. You guys, thank you so much, really appreciate it.
You're listening to the Bloomberg Business Week podcast. Catch us live weekday afternoons from three to six Eastern Listen on Bloomberg dot com, the iHeartRadio app, and the Bloomberg Business App, or watch us live on YouTube.
We're about to go on a little adventure together, and that adventure.
Is going to span seventeen years of music.
How does that sound.
All right? Everybody?
Well, they Ventor is definitely underway the Errors tour, right. The concert film released just last week, breaking in more than one hundred million in advanced sales. That's expected to double within weeks. We just talked about that moments ago. We also have talked about just anything. It feels like Taylor touches Tim just turns to gold.
It certainly includes the re recording of her albums, and that brings us to a story in the current screen time issue of Bloomberg Business Week. It's on newstands, it's online at Bloomberg dot com, Slash BusinessWeek, and of course always on the Bloomberg terminal. The story by Ashley Carmen. She covers podcasts the music industry creators at Bloomberg News. She's with us right now in our Bloomberg Interactive Brokers studio along with the editor of Bloomberg BusinessWeek, Joel Weber. Joel,
can we talking about Taylor? Yeah? The answer to that question is always yes. I'm just waiting for the screen time Taylor's Taylor Edition?
Is this right?
You know?
It might be a thing, you know, Look, she.
Would be a great guest editor. Noel, you're a great editor of the magazine.
You can get Taylor Swift to edit this magazine. I will take the week off maybe longer. What a force, right, and you know, just a little personal page out of my life. I'll be going to see this movie on Friday.
Don't give away the ending.
Ending she's probably a billionaire.
But hold on, what's the occasion?
This is great Friday night and I could get tickets like three weeks ago, and I was like, I'm better book this now. So yeah, I will do this hit there on Friday, and then I will take my son and my wife to a movie called The Aras to her. So, uh, what's incredible about this is that it just totally has taken I think pop culture and just like taking it to a whole other level. Obviously, what she's been able to do at live shows is one thing. Now she's
able to do it in movie theaters. But the best part, and as Ashley wrote in our screen Time issue, is actually when you think about what she's done with albums, it actually sets up just how powerful of a force Taylor Swift actually is. So this is not a news story. But yet it's not nearly over.
Yet, is it?
Actually it is not over yet? Yeah, So should we maybe back up and talk a little bit about what.
The situation is that, I mean, I need to start at the beginning. I actually don't know why she how Scooter Brown got hold of these these the rights to this right.
So, when Taylor was an up and coming, you know, a known name, she was on a label group called Big Machine label group that was never a thing.
She was always known.
From the day she was born, right, exactly exactly. Eventually Big Machine sold to Scooter Bron's management company, and so when they did that, Tailer's master recordings went with that deal.
And is this typical, like artists don't have control over these two versions of rights.
Yeah, so okay. So the master recordings, which is the literal like recording of a song, that specific song in this case and in many cases, is owned by her former record label. What they did not own, because she was a songwriter on all of her songs, is the composition, so that is, you know, the lyrics, the notes, the melody, all of that. So that set her up when when Scooter took over her records for the first he was doing the rights of the first six albums that she
put out. They have a very long history of not liking each other. It's definitely not.
Worth being She was vocal about it, very vocal.
About it happen exactly. She didn't trust him with these recordings, and so when that happened, she decided to kind of go with the nuclear option, which is to re record all of these albums. And she can do that because she still has the rights to this composition. And so that's why you.
Know who you don't want to see go nuclearlor.
Swift, Yeah and shame they didn't do well, right.
Yeah.
So she has been on this mission to re record these albums. She's released a few already and she's going to be releasing nineteen eighty nine. And you can tell when these are the re recorded versions because in parentheses they'll say Taylor's version that is set to come out later this month.
How different? Sorry, Joel, I keep cutting it. Go ahead, Sorry, when it's Taylor.
You're in charge, You're in charge.
How different?
I'll go scorch or later.
How different? This is my last question I've thronest. How different is the Taylor's version versus a I don't want to call it Scooter Brown versions with the Big Machine version compared.
I haven't just a you know, twelve year old in your house.
What you wouldn't want to do is listen to the non Taylor's version if you're a swiftye, because then you're only listening to the Taylor version.
That gets into why she's been I think so successful. But as far as you know, did she stick to the original recording style? Yes, Like she has really tried to basically recreate those original albums. There's been a couple tweaks here and there, a couple of lyric changes. She's released, like new bonus tracks with different artists, so she's added on but no, broadly speaking, like these are meant to replace those original albums.
And she's done really well with them.
Okay, Tim's beak, but this is this is where well, that gets the heart of it, right, because if you're on say Spotify, and you're gonna listen to Taylor Swift, guess what album comes out first? It's the new ones, right, So every time she releases the Taylor's version, the old version goes lower and lower and lower. And you know, the guy that she didn't want to have control, any control of anything, makes less and less money on it.
Well, so actually she so Scooter no longer owns these recordings. We should say Scooter sold them to Shamrock and now they hold onto these But regardless, I mean, she wants control of her own tracks, and she has been extremely successful. I can tell you guys, A little bit of a stat here. So, as of July one of her album's Fearless, Taylor's version had earned a one point four to seven
billion on demand song streams since its release. Okay, in that same amount of time the original Yeah, in the same amount of time the original albums and the non Taylor's version received six hundred and eighty point four million, so obviously still substantial, but much much smaller than what
she's receiving on that new album. And then since it's November twenty twenty one release, Red Taylor's version had reached two point eighty six billion on demand streams, while the non Taylor version earned four hundred and seventy six point
five millions. So people are widely choosing to listen to Taylor's version, and kind of like what Joel was talking about, in some ways, this has become almost an ethical conversation, like who are you going to support this artist who has been very public about her disputes over her rights and her ownership. Are you going to support her? Are you going to support you know, the investors who have bought this in different ways.
Well, I will say my daughter, who's been a fan for a long time, but she took that evil Scooter Braun Like it's like, what, how do you even know who Scooter Braun is? And it's just interesting how she has realized, as you say, it's an ethical decision in terms of what music you choose to play.
Has she written lyrics about Scooter Braun?
There is speculation.
History of Taylor going scorched earth on ex boyfriends, you know, like Jake Jillenhall once had a career and then became.
A victor of great sound of some songs, right.
Like, so so there is this history.
Has she gone there?
There is definitely speculation that some of the songs she has written are about Scooter. I don't know that she has ever confirmed or tonight.
I don't know. I mean neither with Jake Jillenhall either.
It's just it just Google that I didn't know they dated. Okay, yeah, it takes.
Your role, not Scooters.
I don't know.
I'm no it is, but you know, we've been kind of laughing not laughing, but I feel like we talk about the financial markets and Taylor Swift comes up, like it's just whether the economic impact. You know, we were all out of screen time on the West Coast and how many conversations.
People want to talk about with Taylor.
Swift and Beyonce. To be fair, one thing though, that you know, in terms of what you did, like, she can do this? Can anybody else do this? And other artists have tried.
Other artists have definitely tried. I'm sure we are all not familiar with Deaf Leopard's attempt to re record some of their songs over are you?
I know?
Check?
Yeah, okay, Deaf Leopard had tried to do this. Prince has tried to do this. Other artists have tried to do this. But I would say it's interesting because Taylor's version, Yeah, they're not Taylor's version. And this is also uniquely a era of streaming. So in the past, you might have bought an album once you had it on vinyl or CD or tape, and that was your copy of the record and that's what you listen to. But now in streaming, you are constantly making a decision which one do I
want to listen to? And that totally changes the economics.
You know what else changes the economics Being able to sell out stadiums for one thousand dollars a ticket.
You know, take your family to a tailors. Yeah, okay, well a movie.
I was able to buy three tickets for like thirty less than thirty bucks each, twenty bucks.
Each instead of three thousand dollars, So.
Let me do that math for you. And I was like, that'll be Friday at a movie theater is good enough for the Weber household. But the other thing that that speaks to, though, is like, if you're an artist, now you do those live shows and that is where the money is, right, But for Taylor, it's like all of these other things are also money is because.
She's such a horse, right right.
She is the other thing I love about Taylor, which is my last tangent.
My name is Joe Weather Weber, and I love Taylor sweaters.
I'm forced to listen to a lot of But she turns her.
Vulnerabilities into the magic that dreads your business that actually speaks to exactly what we're talking about with the Taylor's version. It's like somebody tried to pull a fast one on her.
It's a story, and it's a story that all the fans can participate in, and that gets down to even the friendship bracelets that we've seen people wearing to her shows that came from a lyric that she wrote that fans read into and were like, oh, we should wear friendship bracelets, and these shows they just it is a participatory experience. It's not just one of fan and then artists and then a fan consumption. It's actively we're looking for clues from her.
You know, it's like the Chiefs, Right, we.
Didn't talk about that.
I can't wait for the time a song, right, I'm sorry.
Is there a chance the history Taylor Swift could buy back the catalog?
I mean, at this point she's committed so much time to the re recordings, but I you know, I don't know.
The early stuff, which if you listen to her, right, she's got a different tone certainly early on. So like you do wonder if at some point she wants to own that where her sound was a little different.
I'm just gonna say, yeah, I mean she has, obviously, as we all have, aged and voice changes over that time. So as much as she is doing what she can to make them identical, of course, there's always going to be moments where you can tell.
Is there any sense of like when the when the next releases will come out, or what the sequence is it alway? Is it always chronological or.
It is not chronological? So nineteen eighty nine is next, and then I believe there are yeah two more after that, and I don't think she has shared what that order will be. I for this story did go deep on Reddit, and there are some fan theories out what the order is and why.
But always theories though, right, yeah, thirteen or the like. There's always like all these things around everything she does in terms of her releases, right or when it comes out or the date and time, like it's crazy.
Yeah, I'm just gonna say, so, when are you gonna get When are you gonna go to the theater?
Carol, find me a babysitter. I'll go as not mine, But yeah, I was gonna say thanks for the invites of the FIDA. However, there were three seats not together. I was like, Okay, are they really you couldn't get seats together?
Mine's off in the corner.
Yeah, you know, we just talked about that.
How she's on her way to becoming America's youngest self made female billionaire and one of the few I'm reading from the story Magnet Millennials who hasn't made her fortune from memestocks and cryptocurrency. But you do wonder, like what's her next step, like her power in terms of philanthropy, because she has such an incredible stage whatever she does.
Yeah, I mean, it really does feel like anything she's going to put her weight behind.
Not crypto was like hard.
Yes, right, she looks pretty good in hindsight. You know what you know what is so amazing? She said, no, right, she produces so much music, She writes so much music.
She hasn't heard.
Yeah, but I mean, and she has so many collaborations with artists who I love too. I mean, she's prolific. It's pretty amazing. Like her output is remarkable.
Yeah, no, one hundred percent. And she tends to just drop these albums when you're least expecting them, and I think that also keeps the fans engaged. And she does elevate other voices as well, and has kind of you know, we talked about Travis Kelcey a bit, her new her new man who also who is an NFL player.
But she came along to help him, right.
Yes, but you know you could just see the ripple effects from her presence on other people. She has been hanging, Like what the NFL got cool real quick, right, And she's been hanging out with Sophie Turner, who has her own meritable marital things happening. But it's like she has been able to assow see herself with the people she wants to and raise them up in a way that she wants.
Do you feel like you know right? She kind of relates in this kind of crazy way.
Taylor Swiss World, you're just living.
I'm okay with it. That's cool, really cool stuff.
Ashley Carmen, thank you so much, really appreciate it. Covering podcasts music industry creators at Bloomberg News, check this out. It's in the current issue of Bloomberg Business Week Ore thanks to Joe weber tyk fan.
By the way, you're listening to the Bloomberg Business Week podcast. Catch us live weekday afternoons from three to six Easter on Bloomberg Radio, the Bloomberg Business app and YouTube. You can also listen live on Amazon Alexa from our flagship New York station, Just Say Alexa playing Bloomberg eleven thirty.
Bromucle A Journal.
No, how about you let me drive?
Oh no, no, no, no, who's.
Honey?
Please Bolt?
I want to try.
It's a good question.
This is the drive to the globe. Well ja don on Bluemberg radio.
All right, TikTok, everybody, just about eighteen minutes.
I can't believe it's not sixty minutes. It's actually us and it's Tuesday. And yeah, we got less than eighteen minutes till the market's close today.
Yeah, exactly an interesting day. We talked about the economic news and move up in yields. That's really substantial once again, so let's get to it.
Yeah, honor oursob is Global cohead of Global Banking at Moody's joins us on Zoom in New York City. Good to have you with us, Anna, thanks so much for joining us. Let's talk a little bit about just how broadly the sector is doing. I mean, we heard from the big banks today. We're seeing Goldman down but Bank of America higher.
What are you watching?
No, it was interesting quarter. Look, the big banks are doing fine.
Everybody has a lot of us or a capital tack a little bit about Goldman or city who has a little bit more story credits, But overall, the big banks are very well positioned to brace for, you know, even
more increased regulation. They're building capital organically and they're really benefiting particularly universal banks, you know, looking from the results from JP Morgan and City in Wells Fargo last week and Bank of America to them and excellent results from Bank of America made interesting comes still up to posit stable, really gaining market share, particularly in the sales and trading
business so far from what we've seen. Obviously Morgan Steiling hasn't reported yet, but really kind of winning in the capital market side, which is which is very good as well, without a single losing day. So so definitely, I would say JP, Morgan and b of A leading the pack. Wells is doing well, you know, good capital accretion you know this year, this this quarter, you know, Goldman it's you know, it's basically doing unwind of some of the decisions on the consumer side, and that's going to be
that's going to continue. But what's more disappointing is that the continuing asset management uh kind of loss is related to commercial real estate. They're trying to restructure the asset management business to be more third part in the unbalance
sheet and that's going well. On alternatives, they're really you know, on target to raise that to two billion, But there's still going to be some noise both from you know, the onwine of the consumer business and and certainly from the asset management business restructuring as well.
So when you look, listen what you do. It's so great to have you on on a day like this when we're talking about the big banks. We get a bunch obviously last week, a bunch today, and there's a lot more to come, certainly when we start to get into the regionals. But Anna, you know, you also co ed global bank rating over at Moody's. So when you look at the sector broadly so far, let's let's talk.
About the said they're doing fine. That's the official rating. Can you're doing fine?
Can you just cross it off and just say, okay, we're good.
The large banks, you know, for sure, I think that what the regulators did post the financial crisis, it was painful for the US Bank to get to this so called Jamie Diamond's favorite, the bold plating of regulation, but that really made them stronger and they're capitalizing now.
I mean there are basically that we're wading against the Europeans for a decade and now with all this, you know a little more challenges that we're seeing on the regionals.
The big banks are basically kind of the bright story and you know, very different. Our expectations with the regionals that are basically just start reporting is that there's going to be a different performance on any interest margin because the big banks simply have that very I mean, think about the premier deposited.
Franchise at a Bank of America or Welsh Park.
Or Japim Morgan, then they have to be maybe a little bit up more for the plougy, right, but compared to what the regionals have to do. So things are well when.
You look at the regions, are there anybody in particular and I'm assuming you have to be a little bit careful, but is there anybody in particular that's kind of on your radar that you're keeping an eye out for that you think.
I'll try not to mentioned specific names, but I think broadly you can like, yeah, P and C obviously reported was good results. We're looking at super regionals, you know, the it's really interesting how you know, USB, you know, performs and US you know, trying to see relative to PNC because P and C had very you know, very decent results for for for original peer group, and then it's going to be very important. A couple of things that we're going to be watching is what is how
much the posit stability is there. We look at the macro from a macro perspective, there is the posit stability this quarter. So we're not seeing some big you know, deposit outflows or anything like that, but they're paying more for deposits and there is this shift to CDs, and we want to see how much that is affecting in
the net interest margin. We're expecting two to three percent lower net interest income, which is very different, is you know, relative to the large banks, which are actually even JP Morgan Jamie Diamond said, you know, look we're still expecting you know, Christian and are your interest income. So there's going to be the divergence. We want to see commercial reals state they're much more exposed. Typical regional bank has one hundred and eighty percent of their tangible common equity
in commercial real estate. Community banks are close to three times the tangible common equity, and we want to see if there is a divergence related to what the big banks reported. SIRIA is going to be definitely an asset class to watch the big banks increased provisions prudently, but there's not really a lot of credit costs related to ciare yet, So we want to see if there is a different story in the regionals. That's probably one of the most important things. And thirdly is a creation of
capital based on these new regulations they are coming. How they're going to do that in a more challenging opening environment.
How concerned are you about assets leaving regional banks kind of what we saw earlier this year as results of higher rates elsewhere.
You know what, it's probably not as much d year. It's going to be interesting what happens.
You know, with the make it's appened, you're saying it's already happened.
Look, there is there was a you know, threeans.
Of BIXS deposits that were created as part of the quantity using around eight hundred billion have left, and you know they have let both from the big banks and from the small banks. Our data shows that the smaller banks departure of the posit really accelerated more after SVB, but doesn't mean that the big banks are not losing the posits either. It's just part of the quantitative of
tightening rather than confidence issue. But you know, big people and commercial entities particularly will look to diversify there their opposit franchises, and the big banks.
Have been beneficiars right and we're starting, you know, as we often see, you know, we're seeing a bunch of debt issue ince P and c IS among them. We saw that today, we've seen the big banks also doing it. We've seen a lot of debt coming to market. You know, it's a good market for these banks to be doing it, and it makes sense at this point, are again, you know, looking at the debt side of it, anything in particular
that you're watching. In terms of the reception in the marketplace among investors.
I think the investors a little bit. It's calm, you know, has calmed down from those very turbulent days of the spring. You know, there were obviously some outliers out there with.
Significant industry at risk that put a bad picture on the whole industry. But there is still six hundred and fifty billion or so losses on banks balance sheet. The good thing is that you know, we have the lending facilities. There's not this imminent issue for banks to liquidate any
of these assets. But it's going to be a drag on bank's earnings, and I think that the investors are understanding which metrics they need to look at for one bank, you know, looking at the posite quality, looking at the names, looking at exposure to commercial reals. That probably is more important today than thinking about like rund banks.
All right, we're gonna leave it on that now, Anna, thank you so much. I really appreciate it. Anna Oursev. She's Global co head of Global Banking of Moody's joining us ound Zoom in New York City. But really an appropriate guest to have considering all of the banking earnings that we got today and really over the last week or so.
This is the Bloomberg Business Week podcast, available on Apple, Spotify, and anywhere else you get your podcasts. Listen live weekday afternoons from three to six Eastern on Bloomberg dot com, the iHeartRadio app, tune In, and the Bloomberg Business App. You can also watch us live every weekday on YouTube and always on the Bloomberg terminal