Invictus Group’s Post

Capital adequacy discussions within the banking system are often focused on whether a bank has enough capital. However, having too much capital is not good either. If shareholders want a 0% return, they can just keep their money in a checking account. Its critical that community banks become far more focused on dividing their capital into offense and defense in prep for the next lending cycle. Check out my latest piece on this idea.

In this week's #NeuGroup Insights: A NeuGroup member conversation about fed funds credit lines, and the broader context for banks and their clients. #bankfunding #fedfunds

Private credit has grown nearly tenfold since 2009 to $2 trillion, and the size of the addressable market could reach as much as $30 trillion. Four key trends are helping drive this growth: (1) Expansion of private credit into a broader array of asset classes (including the rise of non-bank lenders in asset-backed finance, infrastructure and project finance, jumbo home mortgages, and higher-risk commercial real estate loans) (2) the rise of ecosystem partnerships and open-architecture business models, (3) the amplified advantages of scale for competitive differentiation, and (4) increased focus on technology to boost performance. These shifts present a generational opportunity for asset managers, banks, and insurers to reimagine their roles in the financial ecosystem. Those who harness scale, technology, and disciplined credit fundamentals will lead the next era. Read the full article, “The Next Era of Private Credit” by my colleagues Fuad Faridi, John Spivey, Ju-Hon Kwek, with Henri Torbey and Luca Bionducci, at the link in the comments below ⬇️ #PrivateCredit #Innovation #BankingIndustry

Going underwater on bonds is no longer the panic sell it was a year ago. In a bid to bolster their financial health, regional banks are increasingly willing to absorb billions in losses by selling underwater assets. This proactive strategy aims to fortify their balance sheets amid rising interest rates and economic uncertainties. By offloading these risky assets, banks are positioning themselves for long-term stability and growth. #FinanceNews #RegionalBanks #FinancialNews #BankingIndustry #Banking #BankingNews #Fintech https://lnkd.in/eSEJmyps

While the 2008 global financial crisis greatly sped up the growth of private credit, where is the disruption of bank lending headed next? Our experts share their views on the rapid evolution of the private debt market and look to the future. Read more at https://from.ubs/6040laqVQ #Alternatives #PrivateCredit #FixedIncome #Disruption #TheRedThread #ShareUBS

Top 5 Bank FDs: Best FDs for 1, 2, 3 and 5-year time period? Check list Full Article Link >>> https://lnkd.in/ggH2cmiT Welcome To Latest IND >> Fastest World News Individuals with surplus funds or maturing FDs could consider current high-interest rates for reinvestment. (AI image) Top 5 Bank FDs: Bank Fixed Deposits (FDs) remain a popular choice among conservative investors seeking stable returns. The current high-interest-rate scenario presents an opportune moment for investments, particularly before potential […] . . Latest IND . . . . #trendingnews #newstrending #trendingtopicnews #lifestyle #business #news #healthylifestyle #smallbusiness #supportsmallbusiness #lifestyleblogger #luxurylifestyle #businessowner #businesswoman #smallbusinessowner #businessnews

How can investors prepare when they think more bank failures are coming? Shelf charters. Les Lieberman expects credit challenges will lead to the at least a handful of bank collapses. If his theory is right, his group wants to be ready to buy. Thanks to Les, Todd H Baker and Brian Graham for chatting about bank failures, private capital and what happens when they mix in my latest for American Banker:

"Survey: 45% of Organizations Moved Deposits to Large Banks, Proactively Adapting to Challenging Environment Thirty-five percent of companies spread their deposits among a greater number of banks to further diversify counterparty risk, according to the 2024 AFP Liquidity Survey." There is evidence that CFOs find security in Too Big To Fail. Foolish or sound attitude? Is there a lemming-effect caused by uncertainty? #liquidity #banks #corporates #uncertainty https://lnkd.in/gtT2e9Gc

Banks reported tighter standards and weaker demand for home equity lines of credit (HELOCs). Moreover, for credit card, auto, and other consumer loans, standards reportedly tightened, and demand weakened on balance. #Debt #Economy #HousingMarket