Archive: November 2019

High Leverage that Yields Negative Earnings Creates Risk

IDC Financial Publishing (IDCFP) utilizes the acronym CAMEL to represent the financial ratios used to evaluate the safety and soundness of commercial banks, savings institutions and credit unions. In this article, we explain how IDCFP uses earnings returns as the “E” component of our CAMEL rating, and why it is important…

Keep Reading »

How Tariffs Created a Positive Chain of Events

There is some debate as to the impact of recent tariffs, and whether the outcome would be positive or negative. This article illustrates how the Trump Administration used tariffs to solve trade imbalances, and address intellectual property theft, while controlling interest rates and preventing worldwide recession, all without raising inflation. The…

Keep Reading »

Forecasting U.S. Interest Rates

Understanding the economic cycle of U.S. manufacturing and its relationship to foreign manufacturing cycles best explains how to forecast both short- and long-term interest rates on government bills and bonds. In a recent article, IDC Financial Publishing (IDCFP) explained the relationship in manufacturing cycles between key countries. In summary, tariffs…

Keep Reading »

The Critical Margins Used to Measure Management in Banks

IDC Financial Publishing (IDCFP) utilizes the acronym CAMEL to represent the financial ratios used to evaluate the safety and soundness of commercial banks, savings institutions and credit unions. In this article we discuss margins as a measure of management, the “M” component of our CAMEL ranking, and why it is important…

Keep Reading »