Taylor Advisors is leading the pack when it comes to finding creative solutions designed to increase profitability and promote sustainable growth. Learn more about the waves we’re making and industry happenings in our blog.
Taylor Advisors is leading the pack when it comes to finding creative solutions designed to increase profitability and promote sustainable growth. Learn more about the waves we’re making and industry happenings in our blog.
During the 2008 Financial Crisis liquidity conditions tightened for the entire banking industry in a very short time span. Many financial institutions were caught off-guard as the impact was far greater than they had modeled. Various liquidity counterparties shut off funding lines in an effort to preserve their own balance sheets. Unlike commercial banks and…
Margin Depression From the end of 1992 to the beginning of 2018, net interest margins in the Banking industry have declined about 100 basis points, with earning asset yields declining from 8.1% to 4.2%, and funding costs falling from 3.8% to 0.5%. This margin compression has been offset by either lower credit losses and/or lower…
Treasuries kicked off 2018 trading lower with yields rising across the yield curve. Expanding U.S. and global economies, optimistic Fed, and very early signs of increasing inflation have all contributed to the run up. The Federal Reserve is projecting three increases in the Fed Funds rate for 2018 taking the rate to 2.00-2.25% range by…
With Tax Reform signed into law in December, we discuss its impact on the municipal market, specifically for bank investors. Summary of Relevant Tax Law Changes: Corporate tax rate cut to 21%, down from 35% Top individual tax rate will be lowered to 37%, down from 39.6% 20% deduction for pass-through entities (e.g., S-Corp banks)…
A draft of the Tax Reform proposal was released this week by the GOP. Below, we discuss some potential key implications on the municipal market, focusing on investors’ tax-equivalent yields/spreads and market value. All spreads are based on current market yields, and the illustrations assume all else stays equal. For Individuals Proposal: Maintain the top…
When most economists discuss changes in the fed funds rate, the most commonly discussed relationships are unemployment, gross domestic product, and inflation expectations. However, credit conditions are often indicators of banks’ willingness to lend that helps sustain, inflate, or deflate economic activity. A result of this basic concept, we began evaluating bank charge-off rates, gross…