Mr Cooper Group Inc (COOP)

[Duyrowndd]

Banks that went out and fully leveraged in the old real estate market at low interest rates are scrambling for cash. They are now trying to cash in on the higher interest rates so they could make more money but they’re out of cash. That’s trying to get sticky deposits via CDs.

That’s why you see the CD rates, raising some rapidly as they need cash to finance the new loans that make better interest.

The banks are trying to get cash so they can lend it out at higher interest-rate and make more money.

Before it was all about fees and volume of loans. Now it’s about cashing in on the higher interest rates on loans.