Industry Reports

Viola Risk on Equity Derivatives: Hot Driver in Big Tech Stock/Options Rally & Meltdown

09/08/2020

Equity markets and related options for single stocks and indices have been rocked by the Big Tech stock/options squeeze undertaken by Softbank. There will be big negative impacts to providers of equity derivative protection as the big banks and brokers in the US and Europe get snagged in the Softbank stock snafu. ​


Webinar: New Constructs & Viola Risk Advisors: Why the Tech Carnage Can Continue!

09/08/2020

A new generation of investors are learning the equity valuation lessons the hard way as unrealistic and way too high equity valuations are coming crashing down in the Big Tech stock/options world. And there is spillover effects to Big Banks equity/debt & counterparty/regulatory risk as these banks provided the volatility chum that the Japanese Whale craved. Please join us for this excellent capital structure webcast jointly presented by New Constructs (our equity valuation specialist) and Viola Risk Advisors. 


Multi-Asset Strategies: Global Hospitality Industry: The Great Reopening & 7 Key Challenges

07/30/2020

Peter Plaut is our Viola Risk Advisors collaborator covering Global Multi-Asset Strategies across investment grade corporate bonds, high yield & distressed bonds, real estate development projects, litigation finance, toll roads and other illiquid private placements. His debut article discusses the hoped for recovery in the global hospitality industry.


The Pandemic Hits Parade: DJ Fed Spins Severity Scenarios

06/28/2020

The virus has stressed the financial system with systemic risk never seen before. Most bigger banks can survive with capital structure intact. COF, GS should have major difficulties maintaining common stock dividend. Perpetual preferreds are a better investment play. Expect major survivor mergers with Citi, Walmart, Amazon, PNC, USB as the stronger hands.


US Regionals: Coping with Covid-19, Excess Risk Spots

03/31/2020

US regional banks will suffer from the decline in lending and transaction activity and the rise in loan losses despite government/central bank stimulus. Capital One most at risk with large card book. Citizens Financial and Regions in the large bank sector with runaway other consumer loan growth at risk.​ 


Systemic Risk is Back! Most Vulnerable GSIBs: US, Canadian, European?

03/22/2020

Viola Risk stress tests for big declines in economic earnings as the economy contracts due to the Covid-19 virus. US banks look the strongest counterparties but will still be impacted. Canadians can weaken further than US. Europeans have dismal protections against earnings dropoffs. Europeans presented most counterparty and systemic risk. 


COVID-19 Virus Rages Through Public Health & Financial Markets

03/15/2020

COVID-19 is a wildcard event for public health, the real economy and financial markets. We explore the impacts from a material GDP contraction and impacts to asset volumes and credit deterioration. Spreads have gapped 150 bps for US big banks, but still not time to Buy. Counterparty & Regulatory risk amplified to Medium to High levels


Big Banks: Fed Uber Cuts, Will Margins Melt?

03/05/2020

The stock/bond markets have been rocked by Fed rate cuts related to the virus. We look at the impacts to margins and interest income for the big US banks. JPMorgan and BAC less impacted but still difficult. Wells Fargo is most stressed with Citigroup a mixed bag. 


Regional Bank Roundup Part 1: Mergers v. Digitalization; USB & PNC

02/07/2020

US regional banks are still weighing the "merger versus go it alone strategy" with digital banking investment spending a critical part of the calculus. We explore how USB and PNC are contemplating these dynamics in the wake of the Truist deal that recently closed.


Systemic Siren Song: 2020 Outlook: Consumer Risk Defies Gravity, How Long?

01/03/2020

Consumer lending has been the high margin business for banks and other lenders. We explore the potential inflection points that could lead to higher losses by credit sector and user group. 


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