Daily Archives: August 18, 2015

What do Berkshire Hathaway, MasterCard and Toyota Have in Common?

While the Federal Reserve’s Comprehensive Capital Analysis and Review is a key component of regulatory risk assessment, market-based risk assessments like credit spreads and modern reduced form default probabilities are more accurate and more responsive to the changes in the financial services environment.  In our March 3 ranking of major financial services firms by their funding costs, we found that 25 institutions had lower funding costs than the best of the four “too big to fail” financial institutions in the United States.

We update that analysis in this post, using all fixed rate senior non-call bond trades for financial services firms on July 20, 2015.

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