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Breach of Trust: Decoding the Banking Crisis

Musings on Markets

A bank collects deposits from customers, offering the quid quo pro of convenience, safety and sometimes interest income (on those deposits that are interest-beating) and either lends this money out to borrowers (individuals and businesses), charging an interest rate that is high enough to cover defaults and leave a surplus profit for the bank.

Banking 98
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World’s Best Banks 2024: Global Winners

Global Finance

The banks “failed as a result of a combination of unrealized interest rate losses from their long-term, fixed-rate assets and the loss of the low-rate deposits that had funded these assets,” Larry Wall, research center executive director of the Atlanta Fed’s Center for Financial Innovation and Stability, explained in a blog post.

Banking 111
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In Search of Safe Havens: The Trust Deficit and Risk-free Investments!

Musings on Markets

During 2022, the US treasury did not default, but an investor in a 10-year US treasury bond would have earned a return of -18% on his or her investment, as bond prices dropped. and how much to hold in investments with guaranteed returns over their time horizon (cash, treasury bill and treasury bonds).

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Market Resilience or Investors In Denial? A Mid-year Assessment for 2023!

Musings on Markets

In my third post at the start of 2023, I looked at US treasuries, the long-touted haven of safety for investors. In 2022, they were in the eye on the storm, with the ten-year US treasury bond depreciating in price by more than 19% during the year, the worst year for US treasury returns in a century.

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Transcript: Kenneth Tropin

Barry Ritholtz

RITHOLTZ: And those were Treasuries. And so, you know, it was relatively, I wouldn’t say straightforward because I don’t think generating consistent profits has ever been something that’s so straightforward or so easy. RITHOLTZ: Like, very different universe, right? TROPIN: Right. TROPIN: Yeah. No, no, no.

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The Sharing Economy come home: The IPO of Airbnb!

Musings on Markets

In summary, coming into 2020, Airbnb was delivering a combination of growth driven by disruption and a pathway to profitability that made them a prime candidate for a public offering. In addition, growth in the experiences business will also push this metric upwards, since Airbnb keeps a 20% share of those revenues.

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Data Update 1 for 2021: A (Data) Look Back at a Most Forgettable Year (2020)!

Musings on Markets

While the universe of companies is diverse, with approximately half of all firms from emerging markets, it is more concentrated in market capitalization, with the US accounting for 40% of global market capitalization at the start of the year.