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Chris Whalen on Big Bank Earnings and the Return of Credit Risk

Forward Guidance

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The Biggest Headwind for Banks in the Second Quarter

The duration risk is basically a function where the 10 years. The more profound question goes back to your thought about those distressed assets. If you have loans made in 2021 that have coupons of three and 4%, you're under water. Most bond investors, most funds, for example, can't justify owning an asset like that unless they buy it at an extremely low price,. So I think in those cases, the cash flow is what's coming at us.

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