<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=905697862838810&amp;ev=PageView&amp;noscript=1">

LenderHub

SWBC's LenderHub blog is a one-stop resource for lenders.

 

Recent Posts

Market Commentary: Week of August 10, 2020

What Happened:

Last week was all “Can’t stop, won’t stop” for risk assets. Equities pushed even higher with the S&P 500 making gains every day, and the NASDAQ hitting another all-time high. After hitting all-time lows in yield, Treasuries backed up slightly. It is hard to reconcile all-time highs in stocks and all-time lows in Treasury yields, but there it is. Investment-grade and high-yield bonds tightened significantly, as the market gobbled up new issue as if they will not make them anymore. The backdrop this week was the breakdown of stimulus talks between The White House and the Democratic House.

Read More

Market Commentary: Week of August 3, 2020

What Happened

It was another schizophrenic week for the markets. With COVID-19 continuing its rampage across the nation, the Fed pulling no punches on how perilous the economic road ahead is, a lack of a second stimulus plan from the White House and Congress, another week of increasing initial jobless claims, and the visual shock of a 33% contraction of 2nd Quarter U.S. GDP, and safe-haven assets like Treasury notes and gold hitting all-time low yields and high prices, respectively.

Read More

"Let the Genius Figure it Out"

Yesterday I went shopping, buddy, down to the mall
Looking for something pretty I could hang on my wall.
I knocked over a lamp, before it hit the floor I caught it,
A salesman turned around, said, "Boy, you break that thing you bought it."
–Bruce Springsteen

Read More

Market Commentary: Week of July 27, 2020

What Happened?

It was the best of times; it was the worst of times. The NASDAQ hit another all-time high last Monday and then proceeded to trade down nearly 4% by week’s end. Tesla—the world’s most valuable car company—did the same thing, hitting a new high on Monday and then down 14% by the end of the week. As the week wore on, the bad COVID-19 news (which started the week bad and then got worse), the realization that a lot of lifelines that were thrown to a battered populace are expiring very soon and the Republican Senate and the Republican White House can’t agree on a plan, let alone deal with the Democratic House plan.

Read More

Market Commentary: Week of July 20, 2020

What Happened:

Equities were mixed this week as tech stocks seemed to take a breather from their furious multi-week rally. Earnings season is upon us and we had major banks reporting. The crazy volatility in equity and fixed income markets, combined with the fee income associated with historic bond underwriting pumped up trading and underwriting earnings for the banks. However, large consumer banks like Bank of America and JP Morgan Chase put aside billions for expected consumer and commercial loan losses.

Read More

Market Commentary: Week of July 13, 2020

What Happened:

Despite worsening COVID news, stocks—particularly tech stocks—managed to explode higher for the week with the NASDAQ hitting another all-time high on Friday. Nationwide, daily COVID cases rose to 60,000 per day with Texas, Florida, Arizona, and California leading the way. If this looks familiar to last week’s market summary… it is! We just replaced “holiday-shortened week” and instead of 50,000 COVID cases a day, we are now at 60,000.

Read More

Gravity is Gone

“So I'll meet you at the bottom if there really is one
They always told me when you hit it you'll know it
But I've been falling so long it's like gravity's gone and I'm just floating.” –
Drive By Truckers

Read More

Market Commentary: Week of July 6, 2020

What Happened:

Despite worsening COVID-19 news, stocks managed to explode higher for the holiday-shortened week with the NASDAQ hitting another all-time high on Thursday. Nationwide, daily COVID cases rose to 50,000 per day with Texas, Florida, Arizona, and California leading the way. In response, all four states rolled back a fair amount of their economic reopening plans. To some degree, we are seeing the worst-case scenario where we start reopening, virus transmission picks back up, and we have to shut it down again.

Read More

Market Commentary: Week of June 29, 2020

What happened:

Last week was the first real “risk-off” week in quite a while. COVID-19 has pounced on some of our largest population centers that began relatively aggressive economic re-opening campaigns in mid to late May. Florida, Texas, Arizona, and California dominated the headlines, as it certainly appears that the so-called “First Wave” of the virus has not ended yet. The equity and corporate bond markets have banked heavily on the V-shaped recovery and what we are seeing is, the United States is not ready to materially reopen the economy without significant public health damage.

Read More

Market Commentary: Week of June 22, 2020

What happened:

Last week, stocks spent the days grinding back after the prior week’s late selloff. Treasury rates were mostly unchanged as were investment grade and high yield bonds. Risk assets just seemed to want to go up, more or less ignoring the rising COVID hospitalization numbers in Florida, Texas, and Arizona to focus more on talk of a new infrastructure package from the White House and more enactment from the Fed’s Secondary Market Corporate Credit Facility (SMCCF).

Read More