Street Talk

By S&P Global Market IntelligenceBusiness

Street Talk episodes

December 02, 2019 Ep. 53 - Veteran analyst questions value of scale in big bank M&A, future of independent research
The importance of scale has been a driver of larger bank deals announced in 2019 but longtime analyst Nancy Bush is skeptical of the argument. In the episode, the veteran bank analyst, who will retire at year-end, discussed recent large bank M&A, the future of equity research, including the prospect of other analysts opening independent firms like her own, and whether she believes bankers truly have learned lessons from past downturns and are better prepared for an eventual turn in the credit cycle.
29 min
December 02, 2019 Ep 53 - Veteran analyst questions value of scale in big bank M&A, future of independent research
The importance of scale has been a driver of larger bank deals announced in 2019 but longtime analyst Nancy Bush is skeptical of the argument. In the episode, the veteran bank analyst, who will retire at year-end, discussed recent large bank M&A, the future of equity research, including the prospect of other analysts opening independent firms like her own, and whether she believes bankers truly have learned lessons from past downturns and are better prepared for an eventual turn in the credit cycle.
29 min
November 04, 2019 Ep. 52 - A bank's 'knife fight' to stay high performing in a low rate environment
The current interest rate environment creates challenges for virtually all U.S. banks but some institutions, like Signature Bank in Rosemont, Ill., are still producing outsized returns. In the episode, Signature President and CEO Mick O'Rourke discusses how his bank has outperformed most banks, built prized noninterest-bearing deposits through superior service and technology and what changes he sees in the operating environment. ________ For more discussion on banks' efforts to modernize and use technology to compete effectively, join us in Charlotte, NC on Dec. 3 for an event focused on digital banking and innovation. https://www.spglobal.com/marketintelligence/en/events/in-person/sp-global-digital-banking-innovation-symposium?utm_source=banner
22 min
October 14, 2019 Ep. 51- Goldman talks Libor transition, recent SOFR volatility
Financial institutions will move away from Libor, a reference rate that tracks nearly $400 trillion in financial contracts, in just a few years and Goldman Sachs still sees the group adopting the Secured Overnight Financing Rate, or SOFR, despite the recent volatility in the relatively new benchmark. In the episode, Goldman's head of Libor transition, Jason Granet, discusses how prepared the banking industry is for the transition away from Libor, what Goldman is doing today ahead of the move and how the recent volatility in SOFR doesn't change its status as the true replacement for Libor in the U.S., even over alternative benchmark rates that gained some prominence.
27 min
September 24, 2019 Ep 50 - Challenging the legacy core bank providers
A new bank technology firm, Neocova, is looking to chip away at the dominant market share of the legacy core system providers. The big three firms - Fiserv, Jack Henry and FIS – are the core providers for the majority of U.S. banks but Neocova and some others have emerged with new offerings. In the episode, Neocova CEO Sultan Meghji says his firm can help banks compete with larger institutions through greater customization and meet regulatory needs with greater efficiency through artificial intelligence-based technology. Ray Chandonnet, head of Hovde's financial strategy advisory group, recently helped Neocova raise capital, including from a number of banks. He joins the episode and discusses the capital raising process, what community banks like about the platform and how it is different from other new entrants in the space.
27 min
August 16, 2019 Ep 49 - Criticizing Fed policy, while fearing China and the 'magic money tree'
Attendees at Camp Kotok, a gathering of market participants every August in Maine, were focused on recent Federal Reserve actions, how U.S.-China relations will influence future decisions and the potential for modern monetary theory to become a regular part U.S. policy. In the episode, Katie Darden, director of FIG research at S&P Global Market Intelligence, discusses the event and shares interviews with veteran practitioners like Jim Bianco, Danielle DiMartino Booth and David Kotok.
23 min
August 12, 2019 Ep 48 - Bank M&A, investing against an inverted yield curve
Bank stocks have fallen over the last 12 months as fears of a global economic slowdown and a flat-to-inverted yield curve weighed on the group. The selloff caused bank M&A activity to slow early in 2019 but transactions have rebounded. In the episode, KBW President and CEO Tom Michaud discusses investor sentiment toward banks, whether their fears are overblown as well as his thoughts on recent deal activity, including the sales of some FIG-focused investment banks.
22 min
July 29, 2019 Ep 47 - Bank branch closures take greatest toll on majority-black areas
Bank branches are much less likely to be located in majority-black communities — even high-income ones — than other parts of the U.S, according to an investigation by S&P Global Market Intelligence. In the episode, Zach Fox, a senior reporter and author of the analysis, discusses how the disparity between majority-black neighborhoods and other areas has grown in recent years, what has driven the change, which institutions have closed the most branches in those markets, what happens to communities when banks leave and whether current regulations such as the Community Reinvestment Act encourage institutions to serve those markets.
22 min
July 23, 2019 Ep 46 - With delay, CECL won't be countercyclical for most banks
FASB has proposed delaying implementation of a new reserve methodology, dubbed the current expected credit loss model, or CECL, for the vast majority of banks. The delay likely will prevent the new model from working as intended and allow institutions to build reserves well ahead of a downturn. In the episode, we highlight the number of banks impacted by the delay and include commentary from FASB board members on the aim of CECL and bankers and strategists weighing in on the prospect of a recession.
15 min
June 27, 2019 Ep 45 - Fed moving from rate hikes to lower for longer
Financial institutions might be wise to prepare for lower interest rates and potentially for a fairly long time. In the episode, Tony Crescenzi, market strategist at PIMCO, discusses the recent yield curve inversion and his expectation for rates to remain low for a long period of time and possibly even decline notably from current levels.
25 min

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S&P Global Market Intelligence takes a deep dive into issues facing financial institutions and the investment community. Tune in for interviews with industry insiders as well as brief outlooks for…