Deposit betas and net interest margins. How much of a rate move banks keep; the mechanism behind bank earnings.
What to watch: Deposit costs versus fed funds; NIM guidance. It arrives quarterly, and the effect typically lasts months.
It sits in tier 3 — Flows and mechanics: Moves prices without changing anything fundamental, on horizons from hours to weeks. Who is forced to buy or sell, and when. Ignore this tier and market moves will regularly look inexplicable.
Its neighbourhood
Everything this entry connects to directly. Click any point to follow it.
Sectors it moves most
Also in Credit and banking
- Credit spreads
- Bank failures and systemic stress
- Bank lending standards (SLOOS)
- Bank earnings and provisions
- Corporate defaults and bankruptcies
- Private credit and shadow banking
- Commercial real estate and office loans
- Subprime auto and credit-card delinquencies
- Student loan repayment and delinquency
- Mortgage delinquency and foreclosure
- Insurance pricing cycle and reinsurance renewals