- Rates: Treasury yields were largely stable WoW while SOFR swap rates rose meaningfully, widening swap spreads. The move was driven by a stronger-than-expected August jobs report, which pushed September Fed rate-hike odds to around 60%. Markets are now awaiting next week’s inflation data, which is seen as the pivotal input for the Fed’s September 15–16 decision.
- EverBank and WaFd Execute $3.9B Reverse Merger: Jacksonville-based EverBank and Seattle-based WaFd announced a strategic combination. The deal will combine WaFd’s core deposit franchise and CRE expertise with EverBank’s national direct banking platform and broader geographic footprint. EverBank CEO Greg Seibly said, “the strength on one side complements a gap on the other side,” as both institutions shift away from residential lending toward commercial banking. Management expects tangible book value dilution to be earned back in less than two years.
- Revolut Secures Conditional OCC Charter in Six Months: The British neobank received preliminary OCC approval, subject to maintaining at least $95 million in capital and a 10% leverage ratio during its first three years. The charter would allow Revolut to offer FDIC-insured deposits, loans, credit cards, and stablecoin services across all 50 states. CEO Nik Storonsky said the approval “gives us the foundation to build in the world’s largest financial market.” Revolut expects to reach 100 million global customers by mid-2027.
- Brent Crude Surges to $99/Barrel as U.S.-Iran Conflict Escalates: Oil prices jumped above $99 following U.S. military strikes on five Iranian tankers after attempted attacks on American vessels. The hike reignited inflation concerns. Markets now price 60% probability of September Fed tightening, up from 40% one week prior.
Rate Curves
