The Institutional Risk Analyst

The net losses disclosed by BAC and the other large banks at the end of Q4 2023 are significantly understated...

UBS ultimately seems intent upon running off the remaining US mortgage assets, including a few billion in Ginnie Mae MSR financings

The Biden Administration has no real strategy for addressing the growing stress in the market for government insured mortgages

We expect to see USB trading at a discount to JPM and Peer Group 1 until the bank improves its operating leverage to pre-COVID levels.

Persistent talk about a 5.5% 30-year mortgage rate later this year is badly wrong as TBAs flip from 5.5% to 6% coupons for delivery in June

We recently added Western Alliance (WAL) and GHLD to our portfolio

Our view is that the BKI purchase is a horrible deal for ICE shareholders, a value killer of epic proportions

The big take away from Q4 2022 earnings is that credit expenses are headed higher and at a brisk pace

The US government now owns the largest reverse lender in the country.

Bankruptcy of Reverse Mortgage Funding may be first step in a systemic crisis affecting the government loan market

Like COOP, volumes are down dramatically from 2021 but MSR values and cash flows from servicing are rising

Citi has drifted through years of government ownership and weak leadership by the board of directors