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 47 - Bank branch closures take greatest toll on majority-black areas
Ep 46 - With delay, CECL won't be countercyclical for most banks
Ep 45 - Fed moving from rate hikes to lower for longer
Ep 44 - Blockchain, what is it good for?
Ep 43 - More change, M&A on horizon for equity research industry
Ep 42 - Banks losing consumer deposits to fintech, digital platforms, commercial might be next
Ep 41 - How to win the funding battle, use fintech to play offense
Ep 40 - Digital banks take a page out of 'Mad Men'
Ep 39 - A new era for blockbuster bank M&A
Ep 38 - PG&E bankruptcy reveals climate change risk facing Calif. utilities
Ep 37 - Keep 'Marge' happy — how to win the battle for deposits
Ep 36 - 2018 leaves bank investors bruised, searching for value
Ep 35 - Recent selloff could make some bank franchises a bargain
Ep 34 - Digital lenders moving from disruptors to partners, tech providers for banks
Ep 33 - National digital platforms intensify fight for deposits
Ep 32 - On the ground in Puerto Rico – S&P investigates how bankers dealt with Hurricane Maria
Ep 31 - IPOs, blockbuster M&A deals are heating up
Ep 30 - Eyebrows raised as leveraged loans, cov-lite deals hit record levels
Ep 29 - Higher rates shaking up deposits, national digital platforms more than hype
Ep 28 - Despite investor concerns, KBW CEO sees more big bank M&A
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