Banks are paying off debt and taking an immediate loss, which means they'll be making more on future quarters. Yield from 4% to 12%.
Banks Are Cleaning House Of Bad Assets | Chris Whalen (youtube.com)
SBV should have sold their low-yeilds and bought T-bills. To manage duration. They didn't. That was the play. Fed was saying (headfake) inflation was transitory though.
Many bank relationships start with student loans, then move to business loans or mortgages. The deposit base of Shwabb is strong. They don't make a lot of loans, so their income comes a lot from investments.
Escrow for homes are 9 months, so banks can make money there.
Most consumers would say inflation is higher than government says 3%.
Some banks, depending on state they're based, have higher taxes and higher costs (labor etc).
2028 big reset, run out of home buyers but may see supply come on, commercial will drip drip every quarter (they're idiosyncratic you can't generalize like residential). - Stan Middleman
Rent control (NY) says you can't recover your cost on a building (inflation 50%). Only Dems are in office in NY.
NYCB needs more capital, maybe - Chris Whalen. How can it work without prices going up?
There's less distressed debt now than before the pandemic, said Mark Okada (a credit investor). Yield is in 80th or 90th percentile right now for his career.