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Chart Book: Bank Lending Lincoln Anderson  Chief Investment Officer, Chief Economist January 24, 2010
[object Object],[object Object],[object Object],[object Object],[object Object],Levels (red) and 52-week % change (blue) in total bank assets
[object Object],[object Object],[object Object],[object Object],[object Object],Levels (red) and 52-week % change (blue) in total bank lending
[object Object],[object Object],[object Object],[object Object],[object Object],Levels (red) and 52-week % change (blue) in C&I lending
[object Object],[object Object],[object Object],[object Object],[object Object],Levels (red) and 52-week % change (blue) in mortgage lending
[object Object],[object Object],[object Object],[object Object],[object Object],Levels (red) and 52-week % change (blue) in Consumer loans
[object Object],[object Object],[object Object],[object Object],[object Object],Levels (red) and 52-week % change (blue) in securities lending (small #)
[object Object],[object Object],[object Object],[object Object],[object Object],Levels (red) and 52-week % change (blue) in inter-bank loans
[object Object],[object Object],[object Object],[object Object],[object Object],Levels (red) and 52-week % change (blue) in Govt. Securities
[object Object],[object Object],[object Object],[object Object],[object Object],Levels (red) and 52-week % change (blue) in other bank lending
[object Object],[object Object],[object Object],[object Object],[object Object],Large and Small Bank loan totals
[object Object],[object Object],[object Object],Ratio: Small to Large Bank total lending
[object Object],[object Object],[object Object],Deposits as a share of total bank funding liabilities
[object Object],[object Object],[object Object],Non-bank loans to banks as a share of total bank liabilities
[object Object],[object Object],[object Object],[object Object],[object Object],Total bank loans plus commercial paper outstanding
[object Object],[object Object],[object Object],[object Object],[object Object],Total U.S. Debt (red) and 4-quarter change (blue)
[object Object],[object Object],[object Object],[object Object],[object Object],U.S. Non-Federal Debt (red) and 4-quarter change (blue)
The Standard & Poor’s 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.  The Russell 1000 Index measures performance of 1000 large cap, US companies.  The Russell 2000 Index measures performance of 2000 small cap, US companies.  The Russell 3000 Growth and Value Indices measure the performance of growth and value stocks respectively.  The Dow Jones Industrial Average is comprised of 30 stocks that are major factors in their industries, and widely held by individuals and institutional investors. These 30 stocks represent about a fifth of the $8 trillion-plus market value of all U.S. stocks and about a fourth of the value of stocks listed on the New York Stock Exchange. It is not possible to invest directly in an index. The Lehman Brothers Aggregate Bond Index is composed of securities from the Lehman Government/Credit Bond Index, Mortgage Backed Securities Index and Asset Backed Securities Index. The Merrill Lynch High Yield Index is an unmanaged index consisting of bonds that are issued in U.S. Domestic markets with at least one year remaining maturity. All bonds must have a credit rating below investment grade but not in default. Government bonds and Treasury Bills are guaranteed by the US government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value. High yield/junk bonds are not investment grade securities, involve substantial risks and generally should be part of the diversified portfolio of sophisticated investors.  Small cap stocks may be subject to a higher degree of risk than more established companies’ securities. The illiquidity of the small cap market may adversely affect the value of these investments. P/E Multiple: A tool for comparing the prices of different common stocks by assessing how much the market is willing to pay a share of each corporation’s earnings. It is calculated by dividing the current market price of a stock by the earnings per share. Past performance is no guarantee of future results.  Indices such as the S&P 500 may not be invested into directly. The opinions voiced in this material are for general information only and are not intended to provide or be construed as providing specific investment advice or recommendations for any individual. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. Important Disclosures This research material has been prepared by LPL Financial.  The LPL Financial family of affiliated companies includes LPL, UVEST Financial Services Group, Inc., Mutual Service Corporation, Waterstone Financial Group, Inc., and Associated Securities Corp., each of which is  member of FINRA/SIPC.

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Bank Lending Chart Book Analysis

  • 1. Chart Book: Bank Lending Lincoln Anderson Chief Investment Officer, Chief Economist January 24, 2010
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  • 18. The Standard & Poor’s 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The Russell 1000 Index measures performance of 1000 large cap, US companies. The Russell 2000 Index measures performance of 2000 small cap, US companies. The Russell 3000 Growth and Value Indices measure the performance of growth and value stocks respectively. The Dow Jones Industrial Average is comprised of 30 stocks that are major factors in their industries, and widely held by individuals and institutional investors. These 30 stocks represent about a fifth of the $8 trillion-plus market value of all U.S. stocks and about a fourth of the value of stocks listed on the New York Stock Exchange. It is not possible to invest directly in an index. The Lehman Brothers Aggregate Bond Index is composed of securities from the Lehman Government/Credit Bond Index, Mortgage Backed Securities Index and Asset Backed Securities Index. The Merrill Lynch High Yield Index is an unmanaged index consisting of bonds that are issued in U.S. Domestic markets with at least one year remaining maturity. All bonds must have a credit rating below investment grade but not in default. Government bonds and Treasury Bills are guaranteed by the US government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value. High yield/junk bonds are not investment grade securities, involve substantial risks and generally should be part of the diversified portfolio of sophisticated investors. Small cap stocks may be subject to a higher degree of risk than more established companies’ securities. The illiquidity of the small cap market may adversely affect the value of these investments. P/E Multiple: A tool for comparing the prices of different common stocks by assessing how much the market is willing to pay a share of each corporation’s earnings. It is calculated by dividing the current market price of a stock by the earnings per share. Past performance is no guarantee of future results. Indices such as the S&P 500 may not be invested into directly. The opinions voiced in this material are for general information only and are not intended to provide or be construed as providing specific investment advice or recommendations for any individual. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. Important Disclosures This research material has been prepared by LPL Financial. The LPL Financial family of affiliated companies includes LPL, UVEST Financial Services Group, Inc., Mutual Service Corporation, Waterstone Financial Group, Inc., and Associated Securities Corp., each of which is member of FINRA/SIPC.

Notas del editor

  1. The H.8 release provides an estimated weekly aggregate balance sheet for all commercial banks in the United States; it also reports data separately for domestically chartered banks, for the large bank and small bank subcategories of those institutions, and for foreign related banking institutions. Balance sheet detail is limited mainly to bank loans and investments; the release provides estimates of only the major deposit and nondeposit liability categories. The large banks covered by the H.8 release are generally the largest domestically chartered banks and hold approximately one-half of the assets at all domestic and foreign banks in the United States. The number of banks in the H.8 large-bank universe now stands at approximately 30. However, these institutions do not correspond exactly to the largest domestically chartered banks. To provide better geographic representation, the large bank universe contains a few relatively small banks (assets of about $20 billion). Also, some large banks whose assets are concentrated in credit card loans have been placed on the small-bank H.8 panel because the less-detailed balance sheet information that small banks report is considered adequate to capture the basic lending activities of such banks. The large-bank balance sheet data reported on the H.8 are simply the aggregate of the approximately 30 banks selected for that universe. The small bank data are based on a sample of about 1000 institutions and represent an estimate of the aggregate balance sheet of all domestically chartered banks not included in the large bank universe. Foreign-related institutions include U.S. branches and agencies of foreign banks as well as Edge Act and agreement corporations. The data for U.S. branches and agencies are an estimate of all such institutions based on a sample of about 60 institutions. The data for Edge Act and agreement corporations cover all such institutions, but they are available at only a quarterly frequency; the weekly data are estimated by interpolation. These institutions account for approximately one percent of the assets at all foreign-related institutions.