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Ep. 103 - Investors worry about bank liquidity, earnings drag from underwater bonds

Ep. 103 - Investors worry about bank liquidity, earnings drag from underwater bonds

Released Tuesday, 22nd November 2022
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Ep. 103 - Investors worry about bank liquidity, earnings drag from underwater bonds

Ep. 103 - Investors worry about bank liquidity, earnings drag from underwater bonds

Ep. 103 - Investors worry about bank liquidity, earnings drag from underwater bonds

Ep. 103 - Investors worry about bank liquidity, earnings drag from underwater bonds

Tuesday, 22nd November 2022
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A spike in interest rates has created large amounts of unrealized losses sitting in banks' bond portfolios and sparked liquidity concerns in the investment community, according to Brett Rabatin, director of research at Hovde Group. In the episode, Rabatin discussed the merits of investors' concerns and the impact that deeply underwater bonds have on banks' liquidity, earnings, valuations and potential regulatory constraints on capital returns.



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