Rising interest rates have once again inflicted a decrement on the valuation of bank bond portfolios, coinciding with a period when major banks confront alterations in regulations compelling them to acknowledge notional losses in the computation of their regulatory capital.
Blackstone Inc.’s $68 billion real estate trust finds itself besieged by nine months of substantial redemption requests, all amidst a gathering storm over the commercial real estate markets. Blackstone Real Estate Income Trust is the largest institutional landlord in the world. The latest ominous signal emanating from Blackstone Real Estate Income Trust (BREIT) comes in…
The US Treasury market hit a record high in July, surpassing $25 trillion for the first time in its history. This has been reached as the US government continues to borrow to fund its operations and fiscal stimulus. Treasury bills, short-term bills, and bonds outstanding rose about 1% in July to a record $25.137 trillion,…
Since the start of 2022, there has been a significant increase in mortgage rates. Consequently, there has been a sharp decline in home purchases, leading to a slowdown in the turnover of housing. The conditional prepayment rate (CPR), which indicates the percentage of the mortgage pool that pre-pays investors annually due to home sales, has…
Worker Adjustment and Retraining Notification (WARN) data is indicating massive layoffs The Worker Adjustment and Retraining Notification (WARN) Act of 1988 requires most companies with 100 or more employees to provide a 60-day advance notification of mass layoffs to employees. Data is collected from 23 states and aggregated into a national time series. This provides…
The US economy is predicted to enter a recession in 2023, with expectations of a shallow and brief downturn. During this time, the unemployment rate is forecasted to increase to around 4.4 percent in early 2024, resulting in approximately 1 million job losses in the latter half of the year and Q1 2024. Although these…
Morgan Stanley ‘s CEO and chairman, James Gorman, announced at the company’s annual shareholder conference on Friday that he intends to step down within the next 12 months.
PacWest and Blackstone are not the only ones who are in trouble. Regional banks like KeyBank, Charles Schwab, New York Community Bank (NYSB), Old National Bank, OZK, Bank United, and many more regional banks have heavy exposure to commercial real estate.
U.S. Treasury Secretary Janet Yellen has issued a warning that if Congress does not increase or suspend the debt ceiling by June 1, the Treasury would not be able to pay off all of the government’s obligations. Yellen also issued a warning that a US debt default “would produce an economic and financial catastrophe”. In…
The financial crisis of 33 AD, which rocked the Roman Empire, had them all: overleveraged financial institutions, external shocks, a run on the banks, and a lack of credit.