YouSaid · the spoken record

Alex Gray

lines on the record: 54
first: 2023-01-13
most recent: 2023-01-13
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“And so for a couple of quarters, if they negotiate that equilibrium correctly, they have the highest opportunity for that widest spread.”
2023-01-13 · Forward Guidance · The Big Bank Deep Dive | Alex Gray · IDENTIFIED FROM THE TRANSCRIPT
“The really good tranche of assets go up because that improves the odds that they're going to give that back to the shareholders in some capacity. And then so the first and most obvious one, profitability, you know, the thing that really stole the show today doesn't surprise anyone is that rising rate environment. Bank of America and Wells Fargo really being held to the highest standard of being able to take advantage of that. And that's because they have loan books that are more risk sensitive. And what that means is their ability, they have large corporate loan books and those books are all variable rate. And so their loan book side of the house is going to be able to appreciate those interest rate increases faster than the other side of their balance sheet where they're paying for the privilege of the capital.”
2023-01-13 · Forward Guidance · The Big Bank Deep Dive | Alex Gray · IDENTIFIED FROM THE TRANSCRIPT
“You think about a couple of different things when you're valuing banks or thinking about the longer term opportunities as an investor. So the first piece you mentioned is profitability, which is obvious, right? But the second piece of that is actually available capital because the way that it tends to work in banks specifically is all of the assets in the book are risk-rated and they're held to a certain standard where you say this is our tranche of best assets. And from that tranche, they're able to basically, they are allowed to do share buybacks and dividends and those types of like capital outputs that investors love. And so we as investors want to see that CET1 ratio.”
2023-01-13 · Forward Guidance · The Big Bank Deep Dive | Alex Gray · IDENTIFIED FROM THE TRANSCRIPT
“Ah, of course. So, you know, Alex, when people talk about earnings, bank earnings, it's they $1 was expected and the actual earnings per share was $1.10 or it was 90 cents. That doesn't really matter because it's all made up, as you and I will talk about later. But just at this juncture, let's start by talking about with interest rates rising because of the Federal Reserve and with the business cycle kind of slowing down, how would you as a former analyst of bank stocks go about finding the value or the earnings power of banks, like profit prospects going forward?”
2023-01-13 · Forward Guidance · The Big Bank Deep Dive | Alex Gray · IDENTIFIED FROM THE TRANSCRIPT