Tag: Banking

How do Bank Stocks Perform During Periods of Rising Rates? (Python Code Version)

This is the Python version of a guest article that originally appeared on RectitudeMarket.com. In this version I include the Python code used to generate the anaylsis. This subject has garnered a healthy debate among market participants in recent weeks. Conventional wisdom says that banks and the financial sector overall should benefit from a rising rate environment. The story goes that bank profitability is inextricably linked to `Net Interest Margin (NIM)`. If rates are rising, it is assumed

READ MORE →

Shadow Banking _ A primer

How large is this shadow banking market?? Estimates vary due to the inherent difficulty of quantifying ‘shadow’ assets. The most recent figures cited by the Federal Reserve and computed by the financial stability board has pegged the global shadow market at approximately $65 trillion USD; having peaked in 2007 at 128% of aggregate GDP* now settling in at approximately 111%. Of the $65 trillion shadow market, the U.S. accounts for an estimated 35% or ~$23 trillion followed by the euro area at $

READ MORE →