Ep 2 - What is the Secondary Market Signaling About the State of Financial Institutions?

Consumer Lending Perspectives

Jeff Bogan welcomes John Toohig, Managing Director at Raymond James and Head of Whole Loan Trading Group. John shares his extensive knowledge on the impact of recent rate increases on banks and credit unions, particularly in the consumer loan space. They examine the performance and strategies of these financial institutions in 2022 and 2023, discussing liquidity trends, M&A activity, and the evolving role of fintech partnerships.

Additionally, they explore predictions for 2025, including tightening margins, student loan impacts, and the potential for a robust M&A environment. This episode is a must-listen for anyone involved in the financial services industry, providing valuable market insights and strategic advice.

"FinTechs have a better tech mechanism to generate loan growth...the natural evolution will continue, and institutions that ignore it are doing so at their detriment, while those that embrace it stand to benefit.” - John Toohig

IN THIS EPISODE:

• [01:00] Introduction to John Toohig and his expertise in loan trading
• [01:18] Impact of Rate Increases on Banks and Credit Unions
• [02:53] Market Reactions and Adjustments in 2023
• [05:51] Current Market Conditions and Predictions
• [10:57] Strategies for Banks and Credit Unions
• [16:00] Role of Fintech partnerships in modern banking
• [20:00] Smart strategies for building liquidity within banks
• [26:07] Fintech Partnerships and Future Outlook
• [32:00] Predictions for the depository space in 2025
• [34:09] Final words of wisdom from John Toohig on loan trading and partnerships

KEY TAKEAWAYS:

• John emphasizes that banks and credit unions should adapt to a high-interest environment by reevaluating loan strategies and adjusting pricing to stay competitive.
• Institutions should aim for “smart liquidity” by creating deposit programs linked to loan offerings, enabling lower-cost funding.
• For long-term success, depositories should collaborate with FinTechs to enhance tech-driven loan growth while retaining traditional customer relationships.
• John anticipates tighter margins but a positive outlook with stabilized rates, increased loan originations, and a boost in M&A activity in the depository sector.

ABOUT THE GUEST:

John Toohig

Head of Whole Loan Trading on the Raymond James Whole Loan Desk and President of Raymond James Mortgage Company. Primary responsibilities include day-to-day trading of whole loan packages, portfolio analysis, transaction management and the structuring of whole loan sales and participations.

Beyond his daily trading responsibilities, John is a regular speaker and content creator for various lending-related conferences and publications. He has presented at most of the major lending conferences including MBA National Secondary, SFIG Vegas / ABS West, CUNA Lending and more, and his commentary has also been featured in publications such as the Wall Street Journal, Forbes, the American Banker, HousingWire and DebtWire. John has created an active following on LinkedIn with regular posts and articles surrounding community lending, providing both lenders and investors with timely commentary on current trends and happenings in the primary and secondary loan markets. In addition, he showcases new lending products, technology, and credit tools as the market constantly evolves.

John received his undergraduate degree from the Houghton College and his MBA from the University of Mississippi with a focus in finance and IT. John has his Series 7, 24 and Series 63 licenses.

RESOURCE LINKS

John Toohig LinkedIn : https://www.linkedin.com/in/john-toohig-29947b40/

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