Attendees at Camp Kotok, a gathering of market participants every August in Maine, were focused on recent Federal Reserve actions, how U.S.-China relations will influence future decisions and the potential for modern monetary theory to become a regular part U.S. policy. In the episode, Katie Darden, director of FIG research at S&P Global Market Intelligence, discusses the event and shares interviews with veteran practitioners like Jim Bianco, Danielle DiMartino Booth and David Kotok.
Aug 16, 2019•22 min
Bank stocks have fallen over the last 12 months as fears of a global economic slowdown and a flat-to-inverted yield curve weighed on the group. The selloff caused bank M&A activity to slow early in 2019 but transactions have rebounded. In the episode, KBW President and CEO Tom Michaud discusses investor sentiment toward banks, whether their fears are overblown as well as his thoughts on recent deal activity, including the sales of some FIG-focused investment banks.
Aug 12, 2019•21 min
Bank branches are much less likely to be located in majority-black communities — even high-income ones — than other parts of the U.S, according to an investigation by S&P Global Market Intelligence. In the episode, Zach Fox, a senior reporter and author of the analysis, discusses how the disparity between majority-black neighborhoods and other areas has grown in recent years, what has driven the change, which institutions have closed the most branches in those markets, what happens to commun...
Jul 29, 2019•22 min
FASB has proposed delaying implementation of a new reserve methodology, dubbed the current expected credit loss model, or CECL, for the vast majority of banks. The delay likely will prevent the new model from working as intended and allow institutions to build reserves well ahead of a downturn. In the episode, we highlight the number of banks impacted by the delay and include commentary from FASB board members on the aim of CECL and bankers and strategists weighing in on the prospect of a recess...
Jul 23, 2019•15 min
Financial institutions might be wise to prepare for lower interest rates and potentially for a fairly long time. In the episode, Tony Crescenzi, market strategist at PIMCO, discusses the recent yield curve inversion and his expectation for rates to remain low for a long period of time and possibly even decline notably from current levels.
Jun 27, 2019•25 min
A few years ago, blockchain technology caught fire across the Street, with some market participants arguing that it would displace many traditional financial services. Those lofty expectations have come back to earth, but practical applications are beginning to surface, including from the nation’s largest banks. In the episode, Tom Mason, fintech analyst at S&P Global Market Intelligence, discusses whether blockchain is a disruptor of traditional financial services or another arrow in the qu...
Jun 26, 2019•22 min
As the equity research business continues to face revenue headwinds, more firms could look to merge with pure play advisory shops. In the episode, George Kuznetsov, head of research and analytics at Coalition, which is owned by CRISIL under the S&P Global umbrella, discussed changes in i-banking league tables as well as the evolution of the equity research business and how it is only profitable for a few but essentially necessary for the vast majority of firms.
May 29, 2019•22 min
Fintech companies and digital-only players have become a threat to traditional banks' retail deposit bases and they could soon turn their focus toward commercial customers. In the episode, experts from Promontory Interfinancial Network and Sandler O'Neill and executives from Goldman Sachs, Heritage Bank and Republic Bank discuss the growth of digital-only deposit platforms, how they have changed the competitive landscape and what community banks can do to combat the threat.
May 06, 2019•19 min
Investment banking firm Hovde recently unveiled a new practice that will work with community and regional banks on asset/liability strategies and ways to utilize technology, including through fintech partnerships, to improve efficiency. Ray Chandonnet, a banking industry veteran and head of the new group, discussed his return to investment banking, different funding strategies banks can employ to win business in a competitive environment and how institutions can work with and emulate fintech sta...
Mar 28, 2019•29 min
Some fintech companies are making hay with digital platforms that tout their differences with banks, even though they are often offering virtually the same products. In the episode, we discuss with colleagues Rachel Stone and Kiah Haslett the deposit strategies employed by the likes of Chime, Aspiration and other incumbent players such as Ally Financial, Discover and Capital One. Those efforts conjure up memories of a Don Draper pitch in Mad Men and likely will enjoy continued success.
Mar 14, 2019•24 min
The days of large bank buyers pursuing deals to plant a flag in a new market might be gone with acquirers now seeing deals as a way to support investments in technology. BB&T touted that prospect when discussing its landmark merger of equals with SunTrust. In the episode, we spoke with S&P Global Market Intelligence colleagues Zach Fox and Joe Mantone about the drivers of BB&T/SunTrust merger, how much i-banks advising on the deal stand to earn and the prospect of other similarly siz...
Feb 08, 2019•20 min
The PG&E Corp. bankruptcy shows that financial backers of California utilities need to consider the risks associated with climate change but that exposure might be unique to entities operating in the state. In the episode, Regulatory Research Associates analysts Dan Lowrey and Dennis Sperduto discuss the next steps in PG&E's bankruptcy process, the future of its power purchase agreements and the risks that climate change can bring to backing utilities.
Feb 06, 2019•24 min
The competition for deposits is quite fierce and banks might even feel the greatest pressure when vying for large commercial customers. In the episode, Kelly Brown, CEO of American Deposit Management, a financial services firm that helps connect depositors with banks, talks about the competitive landscape and pricing in the market, while offering strategies to win new business. https://americandeposits.com
Jan 14, 2019•23 min
Bank stocks just recorded their worst annual performance in seven years. Some analysts believe the selloff has left bank stocks undervalued, while others see few tailwinds to drive the group higher. In the episode, we highlight outlooks from Keefe Bruyette & Woods and Hovde Group analysts and make the case that investors looking for a port in the storm would be wise to back strong deposit franchises.
Jan 07, 2019•15 min
The recent selloff has put some banks on sale at a time when their deposits are only becoming worth more, according to Chris Marinac, co-founder and director of research at FIG Partners. The veteran analyst believes bank stocks have fallen too much over the last two months and he sees value in strong deposit franchises, some of which could receive healthy takeout offers at some point down the road.
Nov 06, 2018•20 min
Digital lenders have enjoyed explosive growth but no longer are seen as pure disruptors to the banking industry as partnerships with traditional lenders have grown. Nimayi Dixit, research analyst at S&P Global Market Intelligence, explains how digital lenders have been successful and why many of their models likely will continue to evolve into fee-based, technology providers for banks.
Nov 01, 2018•25 min
Several big banks have enjoyed early success in attracting new funds through national digital platforms and community banks should take notice as the battle for deposits heats up. The episode highlights the digital strategies employed by banks like Citizens Financial, PNC Financial and Goldman Sachs and features commentary from the management teams of those institutions.
Oct 22, 2018•12 min
Hurricane Maria caused close to $90 billion in damages in the Caribbean and took the lives of a nearly 3,000 people in Puerto Rico. The storm devastated telecommunications services and turned the island into a cash economy, making funds scarce for many banking customers. Lindsey White, who manages S&P Global's financial institutions' news team, visited Puerto Rico and spoke with bankers, regulators and members of the community about the aftermath of the storm, how banks responded and the mar...
Oct 15, 2018•20 min
U.S. IPO activity rebounded in the second quarter while big-ticket deals continued to drive growth in M&A activity. Favorable conditions remain in place and could help 2018 close near record levels, according to Joe Mantone, senior editor at S&P Global Market Intelligence. Mantone said that all means good things for investment banks, which are expected to fly high on strong results this year.
Sep 18, 2018•28 min
The leveraged loan market has ballooned to record levels and the concentration of covenant-lite deals has grown in kind, leaving investors with less protection if loans move into default. Tim Cross, managing editor LCD news, and Marina Lukatsky, director of LCD research, discuss the current state of the market and why they aren't sounding an alarm yet.
Aug 22, 2018•26 min
Greg Hertrich, managing director and head of U.S. depository strategies at Nomura, believes deposit competition should intensify further as interest rates move higher and a handful of large banks roll out national deposit platforms. He discussed how other banks could follow the move and how higher rates are one of rising risk factors that could challenge credit quality.
Aug 16, 2018•24 min
KBW President and CEO Tom Michaud discussed the disconnect between banks' strong fundamental performance and investors' trepidation toward to the group. The Street has also reacted negatively to a handful of big-ticket bank deals, but Michaud believes large bank M&A activity will pick up.
Aug 06, 2018•24 min
Joe Fenech, head of equity research at Hovde Group, discussed current bank stock valuations, the growing importance of deposits in valuing franchises and the market's increased skepticism toward M&A, including transactions that appear favorable for the buyer.
Jul 16, 2018•21 min
Mick Mulvaney, the acting director of the Consumer Financial Protection Bureau, has changed the way the agency operates and reduced enforcement actions against banks. Now, Mulvaney is turning his attention to a powerful tool used by the agency called the civil investigative demand. S&P Global Market Intelligence colleague Brian Cheung discusses how the CFPB uses the tool and what changes could mean for banks and consumers.
Jul 11, 2018•17 min
CD specials are back. More banks are offering the promotional rates on CDs, or certificates of deposits, to attract new customers. While that is good news for savers, it means funding costs likely will rise even more for banks. The episode shines a light on recent CD rates offered by banks and features commentary on smart deposit strategies from Bruce Hinkle of StoneCastle Cash Management and KeyCorp CFO Donald Kimble.
Jun 20, 2018•13 min
De novo banks, or newly formed institutions, were all the rage before the credit crisis but virtually dried up in the years after the Great Recession. The tide is finally beginning to turn, with investors seeking to open banks across the country. Randy Dennis, president of DD&F Consulting, who has helped charter close to 100 banks in his career, discusses the new class of de novos and believes there will be considerably more activity.
May 21, 2018•27 min
More banks are reaching further out the yield curve in their loan portfolios to meet customer demands but, increasingly, advisers believe institutions need to proceed with caution. In the episode, experts from PIMCO, Sandler O’Neill, Chatham Financial and PrecisionLender discuss rate risk and how banks focused on funding will ultimately prove the winners.
May 08, 2018•13 min
Blockchain has been touted as a revolutionary technology that change will financial services forever. But, so far, despite millions invested in research and development by incumbents, fewer use cases have emerged than some had expected. Tom Mason, fintech research analyst at S&P Global Market Intelligence, explains how blockchain technology works and discusses its practical applications in financial services, while dispelling the notion that it will displace large institutions.
Apr 26, 2018•24 min
Deposits have become far more important to banks over the last year, particularly acquirers looking to bolster their funding bases. Given the change, Piper Jaffray analysts Matthew Clark and Will Curtiss say bank investors might find the greatest upside putting their cash behind would-be sellers with strong deposit franchises.
Apr 18, 2018•16 min
A new accounting provision changing the way U.S. banks reserve for loan losses will reduce the industry's capital by more than 10% and lead to greater volatility in earnings but might leave institutions better prepared for a downturn. Banks won't take the change in stride and are expected to respond by raising loan prices and slowing growth. Two colleagues from S&P Global Market Intelligence – Chris Vanderpool, a co-author of our bank projections, and Kiah Haslett, who reports on accounting ...
Mar 19, 2018•21 min
