From May to September 2021, reductions in the Treasury General Account at the Fed (TGA) balances created excess liquidity. Coupled with growth in the Fed’s balance sheet, together, caused yield declines on longer term treasuries from May to July 2021. This stimulus, however, is in the process of ending. TGA…
Credit unions have grown to become a major factor in the U.S. economy, with assets that have grown at nearly twice the pace of banks’ over the past decade.1 Credit unions are owned by their members and are designed to offer lower borrowing costs and higher deposit rates. In addition, the…
Providing the Fundamentals for a Bull Market in Bank Stocks Return on Equity (ROE) defines the profit structure of the banking industry. ROE is defined by IDC Financial Publishing (IDCFP) as the addition of return on earnings assets (ROEA) and return on financial leverage (ROFL), or operating return plus financial return. ROEA equals…
Balances in Insured Sweep Accounts Decrease by $226 Billion As a broker, would you be interested to learn about new banks or credit unions as potential issuers of brokered CDs to capitalize on this forecast? Would it be helpful to see the characteristics of these institutions, such as loan to…
The Number of Financial Institutions Issuing Brokered CDs Temporarily Declines The number of institutions issuing brokered CDs grew significantly in 2018 and 2019. Banks, savings institutions, and credit unions rose from a plateau of 961 in 2017 and increased to a peak of 1,356 in the 2nd quarter of 2019. The…
