Bonds play an important role in portfolios. They spin off reliable income and provide ballast when stocks sink. But bonds are not without risk.Some can be whipsawed by interest rate volatility or credit conditions. While 2022 was an anomaly, it showed that bonds are not risk-f free and don't always provide the balance they're supposed to. That year, interest rates shot up and clobbered most intermediate and long-term bond strategies.The broad-based iShares Core US Aggregate Bond ETF, ticker EG, lost 13% tha ...

Key Points A pair of auto industry bankruptcies spooked credit markets in September. One analyst mistakenly reported that Upstart's delinquencies spiked in August. It's unclear if Upstart's business has been affected by the weakening economy. 10 stocks we like better than Upstart › Shares of Upstart (NASDAQ: UPST) pulled back in September on signs that delinquency rates on its loans could be rising. There was no direct report from Upstart, but investors reacted to third-party market research and ...

Global Research Credit spreads are currently tighter, with IG spreads at 74bp. The most optimistic comparison to previous rate-cutting cycles is July 1995, which marked the beginning of such a cycle. At that time, macroeconomic and credit indicators pointed to an early-to- mid-cycle environment. Specifically, in Q2 1995, our consumer credit health gauge was neutral at +0.0, and our credit-based recession probability model indicated a low risk of recession at 4%. In contrast, as of Q3 this year, our consumer ...

Core Viewpoint - SLR Investment (NASDAQ: SLRC) demonstrated slight outperformance in Q2 2025, with a stable dividend expected to remain unchanged in the near future, indicating consistent performance compared to peers [1][7]. NAV Performance - SLRC reported a fractional quarterly NAV increase, contrary to expectations of a minor decrease, with a combined net realized gain and unrealized appreciation of $2.6 million during Q2 2025 [1][9]. - The company maintained a consistent number of portfolio companies, with no notable surprises in FMV fluctuations for the seventh consecutive quarter [1][14]. NII Analysis - The company experienced a very minor decrease in NII, aligning with expectations, and reported a weighted average annualized yield of 12.24% for Q2 2025, a slight increase from Q1 2025 [2][4]. - SLRC's investment portfolio size increased by $180 million during Q2 2025, benefiting NII results, primarily due to a notable rise in loan originations [3][5]. Dividend Information - SLRC declared an unchanged dividend of $0.41 per share for Q3 2025, with expectations for stability in dividends through at least Q4 2025 [16][19]. Credit Risk Management - As of June 30, 2025, SLRC had only one portfolio company on non-accrual status, accounting for 0.5% of the investment portfolio based on amortized cost, indicating effective credit risk management [15][14]. Valuation Metrics - SLRC is currently deemed slightly undervalued with a BUY recommendation, reflecting a stable outlook compared to previous years [19]. - The projected NAV per share was adjusted up by $0.15, with a current price of $16.11 and a dividend yield of 10.18% [10][13].

Core Viewpoint - SLR Investment (NASDAQ: SLRC) demonstrated slight outperformance in Q2 2025, with a stable dividend expected to remain unchanged in the near future, indicating consistent performance compared to peers [1][7]. NAV Performance - SLRC reported a fractional quarterly NAV increase, contrary to expectations of a minor decrease, with a combined net realized gain and unrealized appreciation of $2.6 million during Q2 2025 [1][9]. - The company maintained a stable number of portfolio companies, with no notable surprises in FMV fluctuations for the 115 companies as of June 30, 2025 [1][14]. NII Analysis - The company experienced a very minor decrease in NII, aligning with expectations, and reported a weighted average annualized yield of 12.24% for Q2 2025, a slight increase from Q1 2025 [2][4]. - SLRC's investment portfolio size increased by $180 million during Q2 2025, benefiting NII results, primarily due to increased loan originations [3][5]. Dividend Information - SLRC declared an unchanged dividend of $0.41 per share for Q3 2025, with expectations for stability in dividends through at least Q4 2025 [16][19]. Credit Risk Management - As of June 30, 2025, SLRC had only one portfolio company on non-accrual status, accounting for 0.5% of the investment portfolio based on amortized cost, indicating effective credit risk management [15][14]. Valuation Metrics - SLRC's current price is $16.11, with a projected NAV of $18.15, resulting in a price to NAV ratio of 0.89, suggesting the company is slightly undervalued [13][19]. - The dividend yield stands at 10.18%, with a payout ratio of 100%, reflecting a stable income generation strategy [13].

You said you have your lowest exposure to credit in 40 years. The the kind of on the other times you've been underweight or the leaning crisis and right before COVID. So what does that mean practically for your investments.Does that mean that you're completely getting away from credit. Are you in investment grade but still at the lowest level. Are you moving into high yield.What does that exactly mean. Sure. First of all, if you look at the investment grade universe according to the index, it's almost $30 t ...

CHICAGO, Aug. 01, 2025 (GLOBE NEWSWIRE) -- Marquette National Corporation (OTCQX: MNAT) today reported year-to-date net income of $6.6 million compared to net income of $13.2 million for the first six months of 2024. Earnings per share for the first six months of 2025 were $1.52, as compared to income of $3.02 per share for the comparable period in 2024. At June 30, 2025, total assets were $2.23 billion, an increase of $22 million, or 1%, compared to $2.21 billion at December 31, 2024. Total loans increased ...

Financial Data and Key Metrics Changes - The company reported record quarterly revenue and net interest income, with average loan and deposit growth of 2% quarter over quarter [4][5] - Adjusted return on tangible common equity was 16.7%, and return on average assets was 1.6% [5] - Net interest income increased to $617 million, up $17 million from Q1 [9] - Total non-interest income was $86 million, with fee income at $81 million, marking the third highest quarter for fees in the company's history [10] Business Line Data and Key Metrics Changes - Average loan balances increased by $940 million quarter over quarter, with commercial and industrial (C&I) lending being the largest contributor [8] - Demand for residential mortgage products remained strong, with expectations for similar or higher volume in Q3 [9] - The company experienced notable growth in commercial deposits, alongside consumer and business banking balances [7] Market Data and Key Metrics Changes - The criticized loans ratio decreased to 2.15% of loans, and non-performing assets decreased to 22 basis points of total assets [13] - The allowance for credit losses increased to $760 million, or 1.38% of total loans, reflecting changes in the economic outlook [14] Company Strategy and Development Direction - The company aims to maintain a strong capital position, with a tangible common equity ratio of 10% and a common equity Tier 1 capital ratio of 14.5% [15] - The focus remains on diversifying revenue streams and enhancing customer relationships to support growth [5][10] - The company is actively managing credit risk and optimizing deposit costs while preparing for potential rate cuts [20][49] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about maintaining margins and loan growth, despite potential rate cuts [20][34] - Client sentiment is improving, with businesses becoming more comfortable navigating tariff-related uncertainties [39] - The company expects full-year loan growth to be in the range of 4% to 6%, with net interest income and revenue trends projected to exceed 7% [16][17] Other Important Information - The company repurchased approximately 26,000 shares of common stock for about $2 million, with $241 million remaining for future buybacks [15] - The second quarter income tax expense was $92 million, with an effective tax rate of 22.9% [11] Q&A Session Summary Question: Ability to sustain loan yields and deposit beta - Management is focused on continuous deposit cost optimization and expects to maintain margins through Q3 [20] Question: Credit reserve build and C&I outlook - The reserve build relates to the CECL model and economic outlook rather than specific issues within the C&I book [23] Question: Impact of legislative changes on renewable energy tax credits - Existing investments and loan commitments remain unaffected by new rules, but future strategies are being reconsidered [26][28] Question: NII growth relative to loan growth - Management confirmed that NII growth is expected to track loan growth, with potential upside if rates remain higher for longer [34] Question: Client sentiment around investment pace - Client sentiment is improving, with businesses adapting to tariff situations and feeling more comfortable [39] Question: Trends in deposit costs - Average total deposit costs decreased, and management expects to continue this trend as they approach future rate cuts [46][49] Question: Core expenses and investments - The company is focused on hiring and building capabilities to support future growth, which will lead to increased expenses [50][51] Question: Loan growth in commercial real estate - The company aims for balanced growth across loan types, with a focus on C&I and single-family loans [81]

Financial Performance Highlights - The company's GAAP Earnings Per Share (EPS) increased from $0.48 in 2Q24 to $0.69 in 2Q25[10] - The company's Operating EPS increased from $0.46 in 2Q24 to $0.69 in 2Q25[10] - The company's Operating Return on Average Assets (ROAA) was 0.88% in 2Q25[10] - The company's Operating Return on Average Tangible Common Equity (ROATCE) was 11.5% in 2Q25[10] - The company's Tangible Book Value (TBV) per share increased from $21.66 in 2Q24 to $24.42 in 2Q25[10] Balance Sheet and Loan Portfolio - Total assets reached $5.5 billion[10] - Total loans amounted to $4.1 billion[39] - Total deposits reached $4.9 billion[39] - The loan-to-deposit ratio was 85%[10] - Non-Performing Assets (NPAs) to total assets ratio was 0.19%[10]

Competitive Landscape & Market Dynamics - The industry is observing how lender choice impacts the adoption of different scoring models, including those from competitors like Vantagescore [2] - FICO scores are considered an industry standard due to their predictive accuracy over a long period [1][12] - The mortgage market has seen a slight pickup, but rates remain relatively high [19] FICO's Value Proposition & Pricing - FICO argues its score represents a small fraction (approximately $4.95) of the total closing costs (around $6,000) in a mortgage transaction, highlighting its value [11][14] - Despite past price increases (e.g., from sub $1.20 to almost $5), FICO believes its pricing remains a bargain considering the value it provides [13][14] - FICO aims to close the value gap and raise prices predictably, without shocking the system [12][13] Risk Assessment & Credit Standards - There are concerns that Vantagescore's looser credit standards could lead to a "race to the bottom," potentially increasing credit defaults and capital requirements [9] - While alternative data like rental history can be useful, the limited availability of such data in credit files is a challenge [7][8] - FICO emphasizes the importance of a minimum of six months of data for accurate scoring, contrasting with Vantagescore's one-month standard [8] Regulatory & Implementation Issues - The FHA is considering using both Vantage and FICO Classic scores, while FICO 20 is still approved [5] - FICO 20 outperforms Vantage, potentially qualifying 5% more borrowers and resulting in lower credit defaults [5] - FICO hopes for the public release of data from Fannie and Freddie that supports FICO's predictive accuracy [17][18]