Taps Coogan – April 24th, 2022

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Chris Whalen, Whalen Global Advisors Chairman, bank analyst, and author of The Institutional Risk Analyst, recently spoke with Blockworks Macro about his outlook for the banking sector. The in-depth discussion highlights Mr. Whalen’s views that, after two years that have seen very low default rates and very high liquidity, the banking sector is beginning a process of normalization. That is to say, funding costs are going up, default rates are likely to go up, and banks will be forced to focus back on more traditional lending businesses. While hardly apocalyptic, Mr. Whalen sees spots of trouble and eventually recession, particularly if the Fed tightens too quickly.

The discussion doesn’t lend itself to excerpts, so enjoy it in full below:

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