Among 435 publicly traded U.S. banks listed on major exchanges, 97% of them reported that their loans’ market value was less than their balance-sheet amount as of Dec. 31.
Equity Premium
The equity risk premium—the gap between the S&P 500’s earnings yield and that of 10-year Treasurys—sits around 1.59 percentage points, a low not seen since October 2007. That is well below the average gap of around 3.5 points since 2008.
Air Travel
The number of global travelers increased to nearly 7 billion in 2022, a 54% increase from the prior year. But 2022 figures came in about 26% less than 2019.
Multi Slows
Investors purchased $14 billion of apartment buildings in the first quarter of 2023. That represents a 74% decline in sales from the same quarter a year earlier and is the largest annual sales decline for any quarter going back to a 77% drop in the first quarter of 2009.
EXR LSI
Extra Space Storage Inc. has struck a $12.7 billion deal to combine with smaller rival Life Storage Inc., which earlier rejected a bid from industry behemoth Public Storage. the deal would create the largest storage-facility operator in the country by number of locations. Including debt, the combined company would have an enterprise value of roughly $47 billion.
Home Prices Decline
The S&P CoreLogic Case-Shiller National Home Price Index, which measures home prices across the nation, fell 0.2% in January compared with December on a seasonally adjusted basis. Prices have fallen for seven straight months, the longest streak of declines since 2012.
Population Moves
Ten of the country’s 25 largest metropolitan areas lost population during the one-year period. The gainers were all in the South or West, with the exception of the Minneapolis-St. Paul area, which recorded a small gain after losing residents the year before.
Cancelled Flights
Cancellations were a major headache for travelers in 2022 with about 181,000 flights scrapped by the largest U.S. airlines. Only 2001, following the 9/11 attacks, and 2020, the start of the pandemic, had more flight cancellations over the past two decades.
SVB Cost
The FDIC estimated the failure of SVB will cost a federal insurance fund it oversees about $20 billion, or roughly 10% of the bank’s assets before its failure.
Maturing Office Loans
Within the next three years, loans are maturing on more than 9,500 office buildings and 17% of all U.S. office stock.