Weekly Report – October 19, 2022

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Highlight of the Week

Home Construction Fell 8.1% in September. Higher Mortgage Rates Continue to Cut Into Buyer Demand.

  • The rate of new home construction fell in September from the month prior. Many point to rising interest rates putting a damper on buyer demand for new homes.
  • The chief economist for the NAHB trade group stated that the homeownership rate will continue to decline in the quarters ahead due to rising interest rates and elevated construction costs

Rate Curves

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Rapid Report:

Abelian Brand Mark

JPMorgan Investment Banking Chair Carlos Hernandez to Retire

  • Carlos Hernandez will retire in Q1 of 2023. Hernandez has worked for JPMorgan for 36 years and is part of Jamie Dimon’s inner management circle.
  • The structure of JPMorgan’s investment bank will not change much with Jim Casey and Viswas Raghavan remaining as co-heads of Global investment banking.
  • Currently, investment banking fees are down 44% this year, but Hernandez believes that JPMorgan will be prepared when the market improves.

Morgan Stanley’s Investment Banking Business Crumbled. There’s More Bad News.

  • In Q3 Morgan Stanley suffered a significant decline in revenue and profit, largely due to the investment bank which saw its revenue fall by 55% from a year prior.
  • While the wealth-management revenue grew its margins to almost 27%, Morgan Stanley still looks to be preparing for worse times ahead.
  • Morgan Stanley increased provisions for potential credit losses by $11 million from the previous year. Analysts believe that the banking sector will see earnings fall by 4% on an annual basis in the coming months.
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Weekly Report – October 5, 2022
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Weekly Report – October 26, 2022

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