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Date
Summary
David Trainer Appears on ‘Bloomberg Markets: Americas’ To Discuss
Subjects
Source
Bloomberg

Name: Bloomberg

URL: http://www.bloomberg.com/tv/

Show
Bloomberg Markets: Americas

Name: Bloomberg Markets: Americas

Persons
David Trainer

Name: David Trainer

Event
Event location
Link
Uploaded
04/15/2021 03:44 pm
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Video
Format
MP4 (1280x720) Use clipper to adjust file type
Duration
0:05:02
Views
120
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0
Transcript
RUSH TRANSCRIPT Thanks so ░░░░░░░░ Now we have David ░░░░░░░░ CEO of investment research ░░░░░░░░ new constructs What did ░░░░░░░░ make of the numbers ░░░░░░░░ saw and the price ░░░░░░░░ afterward David I think ░░░░░░░░ is not that surprising ░░░░░░░░ the stronger banks there ░░░░░░░░ a lot of excess ░░░░░░░░ and reserve releasing is ░░░░░░░░ a lot of these ░░░░░░░░ The underlying lending businesses ░░░░░░░░ not that strong but ░░░░░░░░ think the big picture ░░░░░░░░ that the macroeconomic backdrop ░░░░░░░░ superstrong for banks I ░░░░░░░░ more investors should start ░░░░░░░░ of banks as a ░░░░░░░░ of a hedge kind ░░░░░░░░ investing in the stock ░░░░░░░░ against all of the ░░░░░░░░ mean stocks crazy meme ░░░░░░░░ and Bitcoin things like ░░░░░░░░ Alix the bond market ░░░░░░░░ think differently at this ░░░░░░░░ You have yields down ░░░░░░░░ basis points on the ░░░░░░░░ year We may have ░░░░░░░░ in a range but ░░░░░░░░ range is still below ░░░░░░░░ David that s right ░░░░░░░░ macroeconomic growth is for ░░░░░░░░ going to be good ░░░░░░░░ these guys and I ░░░░░░░░ that the yield curve ░░░░░░░░ going to climb Maybe ░░░░░░░░ as fast as we ░░░░░░░░ but it is going ░░░░░░░░ happen at some point ░░░░░░░░ way these businesses are ░░░░░░░░ huge amount of cash ░░░░░░░░ When you compare them ░░░░░░░░ a lot of the ░░░░░░░░ volatile tech counterparts I ░░░░░░░░ you ve just got ░░░░░░░░ nice opportunity here But ░░░░░░░░ think inflation at some ░░░░░░░░ steepening of the yield ░░░░░░░░ is going to happen ░░░░░░░░ it is going to ░░░░░░░░ a good thing for ░░░░░░░░ guys It is certainly ░░░░░░░░ going to stay flat ░░░░░░░░ get worse for these ░░░░░░░░ on that front Alix ░░░░░░░░ do you get the ░░░░░░░░ 2 that Is that ░░░░░░░░ the beta to that ░░░░░░░░ that maureen CitiGroup Is ░░░░░░░░ more in CitiGroup David ░░░░░░░░ me I would focus ░░░░░░░░ the highest quality businesses ░░░░░░░░ make sure that you ░░░░░░░░ the returns on investment ░░░░░░░░ and the cash flow ░░░░░░░░ these firms and the ░░░░░░░░ of the business is ░░░░░░░░ that There JP Morgan ░░░░░░░░ at the time of ░░░░░░░░ list Goldman high returns ░░░░░░░░ capital They still got ░░░░░░░░ make a big switching ░░░░░░░░ consumer but they have ░░░░░░░░ a super successful capital ░░░░░░░░ business that within will ░░░░░░░░ that successfully overtime Bank ░░░░░░░░ America and citi are ░░░░░░░░ of middle ground Big ░░░░░░░░ but not us strong ░░░░░░░░ as well organized not ░░░░░░░░ good culture Wells fargo ░░░░░░░░ to have problems They ░░░░░░░░ not even able to ░░░░░░░░ it vantage of the ░░░░░░░░ markets esc the capital ░░░░░░░░ excesses these days It ░░░░░░░░ understanding the strong macroeconomic ░░░░░░░░ for them and focusing ░░░░░░░░ the best Alix how ░░░░░░░░ you see the trade ░░░░░░░░ between investment banking this ░░░░░░░░ in loan growth and ░░░░░░░░ steepening yield curve It ░░░░░░░░ like investment banking revenue ░░░░░░░░ t stayed strong enough ░░░░░░░░ wait until the loan ░░░░░░░░ and the net interest ░░░░░░░░ really starts to pick ░░░░░░░░ How do you see ░░░░░░░░ trade off David it ░░░░░░░░ to me like a ░░░░░░░░ good diversification because markets ░░░░░░░░ probably continue to be ░░░░░░░░ and activity will be ░░░░░░░░ as long as interest ░░░░░░░░ stay low As soon ░░░░░░░░ interest rates go up ░░░░░░░░ loan part of the ░░░░░░░░ will start to pick ░░░░░░░░ That is part of ░░░░░░░░ we like them It ░░░░░░░░ almost an alternative investment ░░░░░░░░ today s market to ░░░░░░░░ of the highflying tech ░░░░░░░░ Alix going forward what ░░░░░░░░ going to be some ░░░░░░░░ the key pointers you ░░░░░░░░ looking at to provide ░░░░░░░░ next real catalyst for ░░░░░░░░ David I think you ░░░░░░░░ got to continue to ░░░░░░░░ on cash flow Which ░░░░░░░░ generate the most cash ░░░░░░░░ Which are the businesses ░░░░░░░░ are most successful Despite ░░░░░░░░ the headwinds a couple ░░░░░░░░ firms have really stood ░░░░░░░░ That is JP Morgan ░░░░░░░░ Goldman Sachs with returns ░░░░░░░░ capital that are double ░░░░░░░░ peers The cash flows ░░░░░░░░ much larger too It ░░░░░░░░ be able to afford ░░░░░░░░ buybacks in terms of ░░░░░░░░ the stocks up and ░░░░░░░░ expectation is that the ░░░░░░░░ will get stronger I ░░░░░░░░ Bank of America and ░░░░░░░░ will do get out ░░░░░░░░ third place will Duke ░░░░░░░░ out for third place ░░░░░░░░ on returns on capital ░░░░░░░░ cash flow I think ░░░░░░░░ the best way to ░░░░░░░░ at all stocks but ░░░░░░░░ particular as these firms ░░░░░░░░ from deleverage they have ░░░░░░░░ an economic recovery a ░░░░░░░░ operating cycle for them ░░░░░░░░ think the strong will ░░░░░░░░ stronger and by the ░░░░░░░░ the evaluations on JP ░░░░░░░░ a Goldman Sachs are ░░░░░░░░ far the cheapest as ░░░░░░░░ They are trading at ░░░░░░░░ discounts to their cash ░░░░░░░░ whereas the other firms ░░░░░░░░ trading at premium So ░░░░░░░░ is like the market ░░░░░░░░ bidding up the weaker ░░░░░░░░ not giving the stronger ░░░░░░░░ as much attention as ░░░░░░░░ should Alix David thanks ░░░░░░░░ lot I appreciate that ░░░░░░░░ with us to get ░░░░░░░░ special edition of Wall ░░░░░░░░ week David Westin will ░░░░░░░░ with Bank of America ░░░░░░░░ and chairman Brian moynihan ░░░░░░░░ up at 5 00 ░░░░░░░░ M in New York ░░░░░░░░ is bloomberg.
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