Silver Point

Thomas J. Monaco

Independent Insight Provider

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

Thematic (Sector/Industry)

Hungary Financials / Thematic (Sector/Industry)

Sumitomo Mitsui Financial Group (8316 JP)

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Darkest Hour Ahead: The US is entering its darkest hour with the dumb college kids at spring break being the tipping point for community spread and national guard call-up.</li>
<li class="MsoListParagraphCxSpMiddle"> Financial and Sovereign Crises Underway: The safest credit markets are not properly functioning, and the symbiotic relationship between European financials and the sovereigns which is pressuring sovereign CDS spreads. With Eurozone firewalls already breached, the two Trojan horses of counterparty risk and a challenged corporate bond market (ratings agency risk and waterfall risks due to cascading BBB and B3 corporates) embedded within the “well-capitalized” US banking system are now causing systemic wobbles. </li>
<li class="MsoListParagraphCxSpMiddle"> Equity Unravel Set to Continue: QE6 is not going to stop the equity market bleeding. Quant Funds are every bit as vulnerable as active management in times of stress. Risk Parity Funds have declined in size from USD 600 bn in February 2020 to USD 250 bn as at March 18, 2020. US brokers/investment banks for aggressively lending on margin to high net worth (HNW)/retail investors. Margin to the average retail client is up to 50% of the market value of their securities and are quite willing to lend up to 70% of the market value of a client's investment portfolio for the purchase of real estate - owner-occupied or on speculation.</li>
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QE7 Is Not Far Behind:Beyond bailing out Boeing (BA.US) which is a national security priority, there will clearly be an all-time record handout coming with TARP 2. In addition, the FRB expects to announce the establishment of a Main Street Business Lending Program to support lending to eligible small-and-medium sized businesses, complementing efforts by the SBA. </li>
</ul>



Darkest Hour Ahead: The US is entering its darkest hour with the dumb college kids at spring break being the tipping point for community spread and national guard call-up.
 Financial and Sovereign Crises Underway: The safest credit markets are not properly functioning, and the symbiotic relationship between European financials and the sovereigns which is pressuring sovereign CDS spreads. With Eurozone firewalls already breached, the two Trojan horses of counterparty risk and a challenged corporate bond market (ratings agency risk and waterfall risks due to cascading BBB and B3 corporates) embedded within the “well-capitalized” US banking system are now causing systemic wobbles. 
 Equity Unravel Set to Continue: QE6 is not going to stop the equity market bleeding. Quant Funds are every bit as vulnerable as active management in times of stress. Risk Parity Funds have declined in size from USD 600 bn in February 2020 to USD 250 bn as at March 18, 2020. US brokers/investment banks for aggressively lending on margin to high net worth (HNW)/retail investors. Margin to the average retail client is up to 50% of the market value of their securities and are quite willing to lend up to 70% of the market value of a client's investment portfolio for the purchase of real estate - owner-occupied or on speculation.

QE7 Is Not Far Behind:Beyond bailing out Boeing (BA.US) which is a national security priority, there will clearly be an all-time record handout coming with TARP 2. In addition, the FRB expects to announce the establishment of a Main Street Business Lending Program to support lending to eligible small-and-medium sized businesses, complementing efforts by the SBA. 


Mitsubishi UFJ Financial (MUFG) (8306 JP)

QE6 – To Infinity and Beyond