U.S. banks’ fourth-quarter 2023 earnings demonstrated continued pressure on funding costs and minimal slippage in credit quality. The Street largely took the results in stride, but management teams were hopeful that net interest margin pressure could subside in the second half of 2024 and credit quality would hold up in the face of a higher for longer rate environment, according to Gerard Cassidy, co-head of global financials research at RBC Capital Markets. In the episode, the veteran analyst said he shares that optimistic outlook and believes the current environment is more similar to 1995 when the U.S. economy digested sharp rate hikes by the Federal Reserve and likely will not result in a severe downturn like some investors fear. Cassidy believes bank stocks are a show me story but does see further catalysts on the horizon. The analyst also offered his outlook for bank M&A activity.
Ep. 67 - Veteran investor taps Mick Mulvaney to help with latest financial stock-focused fund
Ep. 66 - Community banks tap the debt markets while the getting is good
Ep. 65 - Deferral practices trap US bank portfolios in purgatory
Ep. 64 - Coronavirus jumpstarts digital adoption
Ep. 63 - Deal talks continue amid bank M&A freeze, setting up for strong Q4
Ep. 62 - 'Brutal' outlook for oil demand offers banks in oil patch no relief
Ep. 61- Investors debate if U.S. banks have enough capital in post COVID world
Ep. 60 - You down with PPP? Consider the risks
Ep. 59 - Coronavirus bailout already towers over TARP and more to come
Ep. 58 - Getting to the bottom of battered bank stocks
Ep. 57 - Community bank turns on digital channel for flood of deposits
Ep. 56 - Latest bank MOE shows even the strong need scale to thrive
Ep. 55 - Longtime investor discusses bank stock outlook, playing the M&A trade
Ep. 54 - Banks ramping up digital offerings to fend off fintech, big tech
Ep. 53 - Veteran analyst questions value of scale in big bank M&A, future of independent research
Ep. 52 - A bank's 'knife fight' to stay high performing in a low rate environment
Ep. 51- Goldman talks Libor transition, recent SOFR volatility
Ep 50 - Challenging the legacy core bank providers
Ep 49 - Criticizing Fed policy, while fearing China and the 'magic money tree'
Ep 48 - Bank M&A, investing against an inverted yield curve
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