Hide Not Slide

3/x Going forward: Banks either need to boost NII via loan growth, hope the yield curve steepens, or continue to improve their non-interest income mix. Capital market performance sustainability is in question and the rise of SPAC’s and direct listings are a headwind to IB.

4/x Catalysts: Buyback resumption (hopefully after Q4) will be a big tailwind (banks built CET1 capital in the quarter, leaving excess capital). Dimon hopes to deploy in 1Q20. Fiscal stimulus could help boost LT rates and drive inflation. Value: Banks are quite cheap...

5/x Strategy: As the world is shifting online $JPM is doubling down on offline, net opening 37 branches in Q3 (highest # of new branches since 2011). The strategy is a mid-term growth driver since JPM received approval to enter 10 new states, putting them in 48.

6/x Insight from @gamesblazer06 - Dimon has “no interest in protecting just NII” $JPM is not interested in taking the Fed cash and dumping it into TLT at low rates to marginally improve NII (and get crushed when rates rise). Indicates LT positioning for curve steepening.

7/7 Anyone to follow for an opinion on exchanges right now? $CBOE, $ICE, $NDAQ, $CME trading at a 6% forward P/E discount to the S&P (in-line ex-CBOE) vs 5-yr ave premium of 20%. $CBOE is looking cheap at 20% discount to peers. Will VIX products recover as volatility dissipates?

Thanks for your comments. @HideNotSlide is the guy to consult on exchanges.

Appreciate it, @HideNotSlide looks like the expert. Looking forward to your tweets and newsletter. Any thoughts on my question above? DM me if you prefer. Thanks!