AC Investment Research

CUBI^E Customers Bancorp Inc Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock Series E Research Report

Outlook: Customers Bancorp Inc Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock Series E is assigned short-term Ba1 & long-term Ba1 estimated rating.
Dominant Strategy : Sell
Time series to forecast n: 17 Jan 2023 for (n+3 month)
Methodology : Modular Neural Network (Market Volatility Analysis)

Abstract

Customers Bancorp Inc Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock Series E prediction model is evaluated with Modular Neural Network (Market Volatility Analysis) and Chi-Square1,2,3,4 and it is concluded that the CUBI^E stock is predictable in the short/long term. According to price forecasts for (n+3 month) period, the dominant strategy among neural network is: Sell

Key Points

  1. Is now good time to invest?
  2. Is it better to buy and sell or hold?
  3. Nash Equilibria

CUBI^E Target Price Prediction Modeling Methodology

We consider Customers Bancorp Inc Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock Series E Decision Process with Modular Neural Network (Market Volatility Analysis) where A is the set of discrete actions of CUBI^E stock holders, F is the set of discrete states, P : S × F × S → R is the transition probability distribution, R : S × F → R is the reaction function, and γ ∈ [0, 1] is a move factor for expectation.1,2,3,4


F(Chi-Square)5,6,7= p a 1 p a 2 p 1 n p j 1 p j 2 p j n p k 1 p k 2 p k n p n 1 p n 2 p n n X R(Modular Neural Network (Market Volatility Analysis)) X S(n):→ (n+3 month) i = 1 n a i

n:Time series to forecast

p:Price signals of CUBI^E stock

j:Nash equilibria (Neural Network)

k:Dominated move

a:Best response for target price

 

For further technical information as per how our model work we invite you to visit the article below: 

How do AC Investment Research machine learning (predictive) algorithms actually work?

CUBI^E Stock Forecast (Buy or Sell) for (n+3 month)

Sample Set: Neural Network
Stock/Index: CUBI^E Customers Bancorp Inc Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock Series E
Time series to forecast n: 17 Jan 2023 for (n+3 month)

According to price forecasts for (n+3 month) period, the dominant strategy among neural network is: Sell

X axis: *Likelihood% (The higher the percentage value, the more likely the event will occur.)

Y axis: *Potential Impact% (The higher the percentage value, the more likely the price will deviate.)

Z axis (Grey to Black): *Technical Analysis%

IFRS Reconciliation Adjustments for Customers Bancorp Inc Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock Series E

  1. For some types of fair value hedges, the objective of the hedge is not primarily to offset the fair value change of the hedged item but instead to transform the cash flows of the hedged item. For example, an entity hedges the fair value interest rate risk of a fixed-rate debt instrument using an interest rate swap. The entity's hedge objective is to transform the fixed-interest cash flows into floating interest cash flows. This objective is reflected in the accounting for the hedging relationship by accruing the net interest accrual on the interest rate swap in profit or loss. In the case of a hedge of a net position (for example, a net position of a fixed-rate asset and a fixed-rate liability), this net interest accrual must be presented in a separate line item in the statement of profit or loss and other comprehensive income. This is to avoid the grossing up of a single instrument's net gains or losses into offsetting gross amounts and recognising them in different line items (for example, this avoids grossing up a net interest receipt on a single interest rate swap into gross interest revenue and gross interest expense).
  2. The following are examples of when the objective of the entity's business model may be achieved by both collecting contractual cash flows and selling financial assets. This list of examples is not exhaustive. Furthermore, the examples are not intended to describe all the factors that may be relevant to the assessment of the entity's business model nor specify the relative importance of the factors.
  3. An entity's estimate of expected credit losses on loan commitments shall be consistent with its expectations of drawdowns on that loan commitment, ie it shall consider the expected portion of the loan commitment that will be drawn down within 12 months of the reporting date when estimating 12-month expected credit losses, and the expected portion of the loan commitment that will be drawn down over the expected life of the loan commitment when estimating lifetime expected credit losses.
  4. For the purpose of applying the requirement in paragraph 6.5.12 in order to determine whether the hedged future cash flows are expected to occur, an entity shall assume that the interest rate benchmark on which the hedged cash flows (contractually or non-contractually specified) are based is not altered as a result of interest rate benchmark reform.

*International Financial Reporting Standards (IFRS) adjustment process involves reviewing the company's financial statements and identifying any differences between the company's current accounting practices and the requirements of the IFRS. If there are any such differences, neural network makes adjustments to financial statements to bring them into compliance with the IFRS.

Conclusions

Customers Bancorp Inc Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock Series E is assigned short-term Ba1 & long-term Ba1 estimated rating. Customers Bancorp Inc Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock Series E prediction model is evaluated with Modular Neural Network (Market Volatility Analysis) and Chi-Square1,2,3,4 and it is concluded that the CUBI^E stock is predictable in the short/long term. According to price forecasts for (n+3 month) period, the dominant strategy among neural network is: Sell

CUBI^E Customers Bancorp Inc Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock Series E Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*Ba1Ba1
Income StatementBaa2Caa2
Balance SheetBaa2Baa2
Leverage RatiosCaa2Baa2
Cash FlowB1B2
Rates of Return and ProfitabilityBaa2Baa2

*Financial analysis is the process of evaluating a company's financial performance and position by neural network. It involves reviewing the company's financial statements, including the balance sheet, income statement, and cash flow statement, as well as other financial reports and documents.
How does neural network examine financial reports and understand financial state of the company?

Prediction Confidence Score

Trust metric by Neural Network: 87 out of 100 with 811 signals.

References

  1. Alexander, J. C. Jr. (1995), "Refining the degree of earnings surprise: A comparison of statistical and analysts' forecasts," Financial Review, 30, 469–506.
  2. M. L. Littman. Friend-or-foe q-learning in general-sum games. In Proceedings of the Eighteenth International Conference on Machine Learning (ICML 2001), Williams College, Williamstown, MA, USA, June 28 - July 1, 2001, pages 322–328, 2001
  3. Athey S, Mobius MM, Pál J. 2017c. The impact of aggregators on internet news consumption. Unpublished manuscript, Grad. School Bus., Stanford Univ., Stanford, CA
  4. S. Bhatnagar and K. Lakshmanan. An online actor-critic algorithm with function approximation for con- strained Markov decision processes. Journal of Optimization Theory and Applications, 153(3):688–708, 2012.
  5. Bickel P, Klaassen C, Ritov Y, Wellner J. 1998. Efficient and Adaptive Estimation for Semiparametric Models. Berlin: Springer
  6. Schapire RE, Freund Y. 2012. Boosting: Foundations and Algorithms. Cambridge, MA: MIT Press
  7. P. Marbach. Simulated-Based Methods for Markov Decision Processes. PhD thesis, Massachusetts Institute of Technology, 1998
Frequently Asked QuestionsQ: What is the prediction methodology for CUBI^E stock?
A: CUBI^E stock prediction methodology: We evaluate the prediction models Modular Neural Network (Market Volatility Analysis) and Chi-Square
Q: Is CUBI^E stock a buy or sell?
A: The dominant strategy among neural network is to Sell CUBI^E Stock.
Q: Is Customers Bancorp Inc Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock Series E stock a good investment?
A: The consensus rating for Customers Bancorp Inc Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock Series E is Sell and is assigned short-term Ba1 & long-term Ba1 estimated rating.
Q: What is the consensus rating of CUBI^E stock?
A: The consensus rating for CUBI^E is Sell.
Q: What is the prediction period for CUBI^E stock?
A: The prediction period for CUBI^E is (n+3 month)

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