Keefe, Bruyette & Woods

I was, yeah.

I, um-- Actually, shout-outs to, uh, Paul McCaffrey and KBW.

They hosted just the most incredible summit here in Montana, a state I'd never been before, actually.

I love Montana.

I'm your host, Robbie Chrisman.

Topics on today's episode include a big primer on servicing values and how they're impacting borrowers, takeaways from a massive sell-off in bond markets yesterday, and my interview with KBW's Bose George on his market research and view for the industry moving forward.

Here, take a listen to a little preview.

When we look at the mortgage industry, consolidation has obviously been a trend over the last couple of years.

This rapid repricing heavily hurt the mortgage market, forcing the Fannie conventional coupon up 19 basis points to 6.22%, as spreads widened materially on light volume, and it also pushed the par note rate up 15 basis points to a restrictive 7.8%.

The probability of a 25 basis point rate hike at the October FOMC meeting has increased to nearly 70%, up from 55% at the beginning of the week.

For today's interview, I wanted to welcome to the show KBW's Bose George to talk about his market research and view for the industry moving forward.

He's managing director at Keefe, Brouillette & Woods, a stifle company, joining in 2005 where he covers the mortgage finance sector, including the mortgage banks, mortgage insurers, mortgage REITs, title insurers, and the GSEs.

Yeah.

Yeah, well, again, there's an event with, I guess, Canal Dance Partner just yet, but at KBW, and then we'll be at Singapore next.

And then, yeah, I'm based out of Dubai, so we do a lot of stuff there.

I think we'll do our first trading commission, like real-life trading commission, which I think is going to be cool, like sort of merging trading with esports by year-ends.

and integrate people and grow.

I have, by the way, like of my last 20 significant deals, you know, from KBW to Ryan Beck to, you know, Stone and Youngberg, I can name them on and on.

15 of the CEOs still work at Steam.

Think about that.

When we Miller Buckfire, we didn't have a restructuring.

We're bolting all these things on.

KBW, in fact, we kept on talking about culture.

Name me a financial services firm like us that maintains a brand like that.

Listen on Apple CarPlay and Android Auto with the Bloomberg Business app, or watch us live on YouTube.

Listen, folks, if you're a bank, if you're a financial institution, you wanna issue a bond, some stock, you wanna buy a bank, sell a bank, do something, anything in the banking space, let's be honest, your first call is KBW, Keefe, Bruyette & Woods.

Um, those folks have been doing a phenomenal job in the banking sector, financial advisors in the financial services industry themselves for decades.

Uh, and they also have some serious 9/11, uh, history here.

KBW's headquarters on the 88th and 89th floor of the South Tower of the World Trade Center.

Um, firm lost 67 of its 171 New York-based employees, uh, that day.

Tom Michaud joins us here, and we really appreciate him sharing some of his time.

Tom Michaud is the president and CEO of KBW.

Of Elo and branch movement, it reminds me of the adage, "If you came here for a signing bonus, you're going to leave for a signing bonus." Well, some people might have a decision to make here as Everbank Financial Corp., the parent company of Everbank, and WAFD, the parent company of WAFD Bank, announced they have entered into a definitive merger agreement providing for a strategic combination of Everbank Financial Corp.

and WAFD Inc. Keefe, Bruyette & Woods, AKA KBW, served as exclusive financial advisor on its three-point-nine billion-dollar reverse merger transaction.

As you can see, there's not much news to open the week, so let's focus on some larger stories in the capital markets.

Specified payups have eroded during the sell-off as investors have become less willing to pay a premium for pools with favorable prepayment characteristics when overall MBS valuations cheapen.

The leadership transition follows a major overhaul of TCPC's portfolio announced last month.

The fund agreed to sell $523 million of loans to a vehicle backed by secondaries investor Pantheon, and has appointed advisors at Keefe, Bruyette & Woods to explore options for a further $671 million of assets.

TCPC has faced mounting pressure after significant reductions in value of its private loan portfolio.

The fund cut its nest- net asset value by 19% in January and a further 5% in May as several investments came under stress.

And that's after Bloomberg exclusively reports that a consortium of buyout firm Advent and also Stripe decided to abandon its pursuit of the fintech firm, the group previously offering more than $50 billion for PayPal, according to those people familiar.

KBW actually noting that it isn't too surprising that PayPal decided to pass, given they probably wanted to get the company for a fairly cheap valuation.

Mm-hmm.

But that analyst still s- continues to see PayPal as an attractive M&A target that we should keep in mind for the next couple of months.