Silver Point

Thomas J. Monaco

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

Thematic (Sector/Industry)

* A Coalition Win Creates Numerous Problems: The German government likely will  drag out the timeline for new Italian elections in order to guide Italy into a recession, as such, the September election appears to be a de facto referendum on the European Union (EU) and EUR. * Financials Tax Looming: Questions arise over how coalition will cover the budget deficit. The financial sector is the proverbial fish in the barrel with over EUR 20 bn in profits. Investment SummaryOn Monday, June 4, 2018…

* A Coalition Win Creates Numerous Problems: The German government likely will  drag out the timeline for new Italian elections in order to guide Italy into a recession, as such, the September election appears to be a de facto referendum on the European Union (EU) and EUR. * Financials Tax Looming: Questions arise over how coalition will cover the budget deficit. The financial sector is the proverbial fish in the barrel with over EUR 20 bn in profits. Investment SummaryOn Monday, June 4, 2018…

Italian Election Likely to Severely Impact Financial Sector

Equity Bottom-Up

* Questionable Restructuring Plan: Deutsche Bank (DBK.GY/DB.NY) [Deutsche] announced a dramatic restructuring plan with targets which are likely too optimistic.* A US Problem Institution: The FDIC – following the Federal Reserve’s lead from a year ago – placed Deutsche US on problem institution status, citing operational weakness.* S&amp;P Downgrade:  Deutsche’s shares now trading in the single digits and CDS spreads are significantly wider. The belated S&amp;P downgrade continues to suggest that…

* Questionable Restructuring Plan: Deutsche Bank (DBK.GY/DB.NY) [Deutsche] announced a dramatic restructuring plan with targets which are likely too optimistic.* A US Problem Institution: The FDIC – following the Federal Reserve’s lead from a year ago – placed Deutsche US on problem institution status, citing operational weakness.* S&amp;P Downgrade:  Deutsche’s shares now trading in the single digits and CDS spreads are significantly wider. The belated S&amp;P downgrade continues to suggest that…

* Capital Hole Has Been Dug: Punjab National Bank (PNB.IN) is in desperate need of a INR 550 bn capital infusion post the Nirav Modi fraud; this amounts to 134% of stated equity, in our view.* No Credible Plan in Place: Despite knowing of this fraud for several months, PNB nor the government would appear to have any form of credible bailout plan in place. On top of the interest reversals associated from this fraud, we find that the bank is seeing additional pressures on funding costs while…

* Capital Hole Has Been Dug: Punjab National Bank (PNB.IN) is in desperate need of a INR 550 bn capital infusion post the Nirav Modi fraud; this amounts to 134% of stated equity, in our view.* No Credible Plan in Place: Despite knowing of this fraud for several months, PNB nor the government would appear to have any form of credible bailout plan in place. On top of the interest reversals associated from this fraud, we find that the bank is seeing additional pressures on funding costs while…

Punjab National Bank – That Sinking Feeling

*Out of Control Credit Risk: High yield credit risk is out of control at 5% of global GDP just as credit metrics at the top of the market are exhibiting vulnerabilities.*Other Credit Challenges Ahead: Areas such as student lending, sub-prime auto, credit cards, Alt-A /home equity loans, securities-based lending , commercial MBS, and non-financial debt also pose global financial sector vulnerabilities.<h2>Investment Summary</h2>American bank CEOs argue that the leverage lending market is healthy due to…

*Out of Control Credit Risk: High yield credit risk is out of control at 5% of global GDP just as credit metrics at the top of the market are exhibiting vulnerabilities.*Other Credit Challenges Ahead: Areas such as student lending, sub-prime auto, credit cards, Alt-A /home equity loans, securities-based lending , commercial MBS, and non-financial debt also pose global financial sector vulnerabilities.Investment SummaryAmerican bank CEOs argue that the leverage lending market is healthy due to…

Systemic Leverage Risk Has Returned In Full Force

Research and consultancy, Tabbush Report

Daniel Tabbush

Research and consultancy

Tabbush Report

We provide research and consultancy on Asian banks. Our focus is on what we call “Asian bank research, without the noise.” We are interested in the most critical swing-factors for banks, the NPL and credit cycle, and where we believe there is a gap between perception and reality. We often focus on the less studied components of bank financial statements.  Our research is highly thematic, sometimes examining unlisted banks and companies as a window on mainstream banks. 

Being independent allows us to look at smaller banks, often overlooked by others. Analysis of BIS bank guidelines in the context of Asia, is also a focal point, while we also analyze global banks operating in the region. We use what we believe is the most comprehensive, reliable financials database, SNL Financial. S&P Capital IQ augments our database, with corporate data and CEIC, with economics. 

Asian bank research, without the noise.

Generally, it is Asean banks where net interest margins (NIM) have seen the best change over the past two years. And for many, this continues in 1Q18. What makes this reality more powerful is that their absolute NIM levels are also the highest in the region. Vietnam, Thailand and Indonesia, all top the list for better margins over the past two years at +22bps to +33bps. It is notable that Indonesia features here, as most will recall the hysteria that comes almost annually from analysts in…

Generally, it is Asean banks where net interest margins (NIM) have seen the best change over the past two years. And for many, this continues in 1Q18. What makes this reality more powerful is that their absolute NIM levels are also the highest in the region. Vietnam, Thailand and Indonesia, all top the list for better margins over the past two years at +22bps to +33bps. It is notable that Indonesia features here, as most will recall the hysteria that comes almost annually from analysts in…

Asian Banks – Margin Disparity Favors Asean

United Kingdom

HSBC Holdings plc is the holding company for the HSBC Group. The Company provides a variety of international banking and financial services, including retail and corporate banking, trade, trusteeship, securities, custody, capital markets, treasury, private and investment banking, and insurance.  The Group operates worldwide.

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HSBC Holdings (5 HK)

Italian Election Likely to Severely Impact Financial Sector

* A Coalition Win Creates Numerous Problems: The German government likely will drag out the timeline for new Italian elections in order to guide...

Thomas J. Monaco

Deutsche Bank - Good Night Moon

* Questionable Restructuring Plan: Deutsche Bank (DBK.GY/DB.NY) [Deutsche] announced a dramatic restructuring plan with targets which are likely...

Thomas J. Monaco

Punjab National Bank – That Sinking Feeling

* Capital Hole Has Been Dug: Punjab National Bank (PNB.IN) is in desperate need of a INR 550 bn capital infusion post the Nirav Modi fraud; this...

Thomas J. Monaco

Systemic Leverage Risk Has Returned In Full Force

*Out of Control Credit Risk: High yield credit risk is out of control at 5% of global GDP just as credit metrics at the top of the market are...

Thomas J. Monaco

Asian Banks – Margin Disparity Favors Asean

Generally, it is Asean banks where net interest margins (NIM) have seen the best change over the past two years. And for many, this continues in...

Daniel Tabbush

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