Vishy Tirupattur: Tumult in the Banking Sector

This podcast episode discusses the potential regulatory changes that may be implemented in the banking sector, particularly focused on regional banks. The speakers believe that regulatory changes are likely in response to recent banking sector turmoil and significant intervention by the authorities. They highlight potential changes such as extending TLAC and LCR to smaller banks above $100 billion in assets. The speakers also discuss the potential impact of these regulatory changes on fixed income and securitized credit markets. They expect that it could lead to a steepening yield curve, wider mortgage spreads, lower bank footprint in muni market, and downside in demand for securitized credit.