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Is it just me or does this seem to be directly pasted out of an LLM

Banks provide a service to the economy of connecting people with more money than needed right now (savings) to people with less money than needed right now (loans). They make money in between when this goes well. So I would contend the shifting of numbers around actually does provide a good to the economy

I have no idea if technology like this will prove to be scalable, economically competitive, or even practical… but it does seem pretty dang cool as a concept

Yes. I've tried using it for pretty straightforward time series forecasts, and I struggled to make it into something useful in a business context.

I'll disclaim that I'm just a finance dude and not a data scientist or programmer. But the documentation leads me to believe that I am in the target audience. I felt like I could grasp the basic mechanics after reading the paper, but I wish the documentation could help someone like me be more intelligent with the 'tuning' of the model. I could never get accuracy below 15% average error, which is too large for my use case.

Probably user ignorance, but that's my experience.

I've been surprised at how little adoption of the Python data / viz toolkit gets picked up in finance settings, when it seems like such a natural fit, so I wrote this post to help unpack it.

Curious what y'all have seen in your experience.

Short term treasuries are definitely pretty common on the asset side, but if you refuse to honor withdrawals on demand deposits you won't have a bank anymore and the FDIC will step in to wind things down

Yeah that's true, it matter more for net-interest-margin / interest income generation in a rising-rate environment. Good point

respectfully, I'm not so sure. The decline in bonds applies to all fixed-rate securities. The only alternatives would have been just straight up cash (bad with inflation) or riskier, less-liquid assets (non-tradable loans with floating rates, for example). They are limited on the latter by risk weighting, and I'm not sure having looser risk controls on the asset side would really help confidence in the banking sector.

please feel free to disagree!

Could you clarify what you mean about the dollar in your pocket worth more than debt at 3% interest?

In corporate finance net cash or net debt is indeed standard practice (cash on balance sheet less debt on balance sheet). It sort of helps understand how much cash is ‘available’ to give back to investors, or pay down debt, spend on R&D, etc.

Now since most of MSFT’s long term debt matures in 2027 or after, you could argue that there is not much cash need for debt repayments in the near term. On the other hand, cash flow from operations was down year over year in their last reported quarter so belt tightening is probably needed to reverse that trend.

Not related, but your place sounds beautiful