Share price reactions increasingly disconnected amid historic Q2 earnings season

Home Private Credit Private Credit Newsletter We strive to provide essential intelligence to our international audience of senior financial executives. As part of this mission, we have launched the new Private Credit newsletter and have expanded our coverage of Private Credit sector in our print and digital editions. The Hidden Risks of Payment-in-Kind BlackRock’s CEO…

The S&P 500 Index ($SPX) (SPY) on Tuesday closed up +1.79%, the Dow Jones Industrial Average ($DOWI) (DIA) closed up +1.71%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +3.32%.  September E-mini S&P futures (ESU26) rose +1.79%, and September E-mini Nasdaq futures (NQU26) rose +3.22%. Stock indices rallied sharply on Tuesday, with the S&P 500 and Dow Jones…

Credit risk models for loan portfolios typically assume that exposures can be assigned to homogeneous risk buckets, as in Vasicek- and Basel-style portfolio credit risk models.We propose a Bayesian clustering model for constructing homogeneous risk buckets directly from loan credit histories. In contrast to traditional segmentation, the framework assigns weighted memberships across multiple clusters, capturing…

Home Commentary American Banks Left the Door Open. European Fintechs Are Walking In. The new battleground for U.S. banking will be about who owns relationships, not who has the biggest balance sheet. Netflix Inc. co-founder and former CEO Reed Hastings said a few things in 2014 that American banks and fintechs should consider pinning on…

The future of data centers isn’t being decided in Silicon Valley boardrooms or Washington backrooms. It’s being shaped on Main Street, in town councils and utility commissions across America. What’s emerging is a new “community contract” that delivers for both sides – joining the data center boom with key local investments and benefits. That contract…

Last week, we heard from an experienced Money journalist who was fact-checking an online claim about American Express. He asked whether Javelin was aware of any strategic shift to close or reduce risk on credit card accounts, and whether concerns about a looming recession were driving the decision. Our first reaction was that American Express…