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.
Investment Guide for a Flat Yield Curve Treasuries yields started 2018 moving higher across the yield curve. Continued U.S. GDP growth, an optimistic Fed, and very early signs of increasing inflation have all contributed to the run up. Longer-dated Treasuries took a breather during the summer months mostly moving sideways. However, Labor Day kicked off…
Accelerating Deposit Costs At the beginning of the Fed’s march to higher rates, depositors had become numb to near-zero rates on deposits. Memories of 5% 1yr CDs from 2007 faded along with the 1st iPhone. Since December 2015, Fed’s initial target rate increase, the frequency of rate changes has gone from an annual adjustment to…
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)…