The relationship between crude oil and pipelines exhibits the qualities of a copula distribution. This was suggested to us last week by a highly numerate financial advisor, commenting on the tendency of the midstream energy infrastructure sector to have its biggest falls when oil is also collapsing. It is an unfortunate historical truth that a […]
I looked through First Horizon Bank’s (FHN) 10K last week. They were in the news because Toronto Dominion (TD) canceled their merger agreement due to uncertainty about when they might receive regulatory approval. FHN’s stock slumped to below $10. The merger price, agreed in February of last year, was $25. FHN CEO Bryan Jordan told […]
The Inflation Reduction Act (IRA) may be the least appropriately named legislation in recent memory. That doesn’t detract from its impactfulness. Ever since its passage last summer, energy companies have been exploring ways to benefit from the uncapped tax credits and other subsidies available. The IRA provided an improved tax credit of $180 per tonne […]
The regional banking crisis rolled on with two key developments on Friday. One was the release of several reports detailing the errors that led up to Silicon Valley Bank’s sudden collapse. Poor regulatory oversight combined with an absence of risk management were to blame. The other was the slow collapse of First Republic, which is […]
This Friday’s inflation update will include the monthly Personal Consumption Expenditures (PCE) deflator and the Q1 Employment Cost Index (ECI). The Fed prefers the PCE because its weights are dynamic. When apples rise in price relative to oranges, CPI assumes no change in behavior, whereas some substitution towards oranges is to be expected. PCE picks […]
A wood-burning fireplace on a cold day is a welcoming sight. The crackle and smell of combusting organic matter has provided a place for humans to bond for millennia. Coal replaced wood as the developed world’s chief source of energy in the 19th century. Because of this some feel a misplaced sentimental attachment to burning […]
I’m the treasurer for our co-op in Naples, FL. I recently asked our local bank to pay a more competitive rate on our cash balance, which is well over the $250K FDIC insurance limit. Their deposit rate for business accounts was 0.5%, and maybe because Silicon Valley Bank (SVB) had just failed they quickly raised […]
Why are people so negative? A recent WSJ article included results to the yes/no question: “Do you feel confident that life for our children’s generation will be better than it has been for us?” 78% of respondents said no. They think the next generation will be worse off. This is the most negative reading in […]
FERC recently approved a request by Williams Companies to expand its Transco natural gas pipeline in New Jersey. As is usually the case, environmental extremists have been opposing this and other enhancements to the state’s energy infrastructure even though Williams, a commercial enterprise, is presumably meeting increased demand for its services. Of the seven fossil […]
I was in the UK recently where reducing emissions to zero by 2050 is now law. In spite of the conservative populism that drove Brexit, Britain is a politically liberal place from the eyes of this visitor who last lived there 41 years ago. Illegal immigration is a worldwide problem, and the British face African […]
