Following Great Public Companies, Watchlist Investing

Watchlist Investing

Following Great Public Companies

Exploring timeless investing concepts in the search for great businesses.

Thematic (Sector/Industry)

<ul><li>The Boston Federal Reserve put out a short white paper on the Silicon Valley Bank crash and the accounting for debt securities known as held-to-maturity or HTM.</li><li>It’s a nice short read and got me thinking about this issue again, which I examined back in May in Issue #100 (link below).</li><li>The question, which has not definitively resolved itself in academia or policy circles, centers around bank accounting and whether banks should be allowed to value bonds they’re not planning on selling (hence the term held-to-maturity) based on amortized cost.</li></ul>

The Boston Federal Reserve put out a short white paper on the Silicon Valley Bank crash and the accounting for debt securities known as held-to-maturity or HTM.It’s a nice short read and got me thinking about this issue again, which I examined back in May in Issue #100 (link below).The question, which has not definitively resolved itself in academia or policy circles, centers around bank accounting and whether banks should be allowed to value bonds they’re not planning on selling (hence the term held-to-maturity) based on amortized cost.

112: More Thoughts On Banks' HTM Portfolio; Boston Fed Paper

Financial sector veteran, KT Capital Group

Fern Wang

Financial sector veteran

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

Equity Bottom-Up

Bank of America Corporation accepts deposits and offers banking, investing, asset management, and other financial and risk-management products and services.  The Company has a mortgage lending subsidiary, and an investment banking and securities brokerage subsidiary.

<ul>
<li>Unrealized HTM losses continued to balloon as interest rates crept higher.</li>
<li>What has caused SVB's demise seems to have now been forgotten and ignored by investors.</li>
<li>We took a deep dive into 3 U.S. Banks, First Foundation, Wells Fargo and Bank of America on their HTM losses.</li>
</ul>


Unrealized HTM losses continued to balloon as interest rates crept higher.
What has caused SVB's demise seems to have now been forgotten and ignored by investors.
We took a deep dive into 3 U.S. Banks, First Foundation, Wells Fargo and Bank of America on their HTM losses.


Investors Have Been Buried Their Head in The Sand on Billions of Unrealized HTM Losses

Head of Research and Global Chief Strategist, Steno Research

Andreas Steno

Head of Research and Global Chief Strategist

Macro and Geopolitical Research House

Steno Research

Steno Research is a new macro and geopolitical research house. We are based out of Copenhagen, Denmark, but have an international team and a strong network of sources and partners around the world. The team is lead by Andreas Steno, previous global head of strategy at Nordea Bank, and Mikkel Rosenvold, former chief consultant in the Danish Ministry of Finance.

Cross Asset Strategy

<ul>
<li>Regional banks are likely going to suffer more as the real estate market looks vulnerable</li>
<li>Some parts of the real estate market are back at 2008 levels</li>
<li>Western states have taken the largest beating, which is likely to continue</li>
</ul>


Regional banks are likely going to suffer more as the real estate market looks vulnerable
Some parts of the real estate market are back at 2008 levels
Western states have taken the largest beating, which is likely to continue


Real Estate Watch: More Charts on the Real Estate Outlook

New Zealand Professional Investment Services Firm, Forsyth Barr

Forsyth Barr

New Zealand Professional Investment Services Firm

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

<ul><li>The Forsyth Barr Technology Digest provides a snapshot of recent information relevant to the listed technology industries across New Zealand, Australia and the globe.</li><li>We focus on three industry segments: Software &amp; Services, Technology hardware, and Semiconductors &amp; Equipment.</li><li>In this report we showcase what New Zealand technology is doing, update on recent news at a company and technology level, display stock performance, show relevant ratios and provide a brief snapshot of each listed technology company in New Zealand and the top 50 in Australia.</li></ul>

The Forsyth Barr Technology Digest provides a snapshot of recent information relevant to the listed technology industries across New Zealand, Australia and the globe.We focus on three industry segments: Software &amp; Services, Technology hardware, and Semiconductors &amp; Equipment.In this report we showcase what New Zealand technology is doing, update on recent news at a company and technology level, display stock performance, show relevant ratios and provide a brief snapshot of each listed technology company in New Zealand and the top 50 in Australia.

Forsyth Barr Technology Digest: Edition 2 — In the Aftermath of SVB

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Capital Markets

Roku, Inc. designs and manufactures consumer electronic products. The Company offers wireless enabled devices that stream audio and video content from the internet to home entertainment systems. Roku serves customers globally.

<ul><li>Roku struggled amidst the controversy associated with its huge exposure to SVB (nearly 26% of its total cash reserves).</li><li>The collapse of the bank resulted in a significant level of panic among the company’s investors.</li><li>While Q4 platform revenue exceeded its estimates and platform revenue was up 5% year over year to $731 million, inflation and macroeconomic uncertainties continue to put pressure on consumers and advertisers.</li></ul>

Roku struggled amidst the controversy associated with its huge exposure to SVB (nearly 26% of its total cash reserves).The collapse of the bank resulted in a significant level of panic among the company’s investors.While Q4 platform revenue exceeded its estimates and platform revenue was up 5% year over year to $731 million, inflation and macroeconomic uncertainties continue to put pressure on consumers and advertisers.

Roku Inc.: The SVB Nightmare & Other Developments