Bank of America CorporationNYSE
Bank Of America: Diamonds Are Forever
Fairlight Capital • 107 Comments
Fairlight Capital • 107 Comments
Mon, Nov. 21, 2:53 PM
- Up for sale are about €1B of non-performing assets as Spain's Banco Popular speeds efforts to clean up its balance sheet.
- Also eyeing a bid alongside Bank of America (NYSE:BAC) is Bain Capital.
- Talks are ongoing, and a deal could be reached in coming weeks.
- Source: Bloomberg
Mon, Nov. 21, 5:53 AM
- U.S. lenders appear to present a bigger risk to the financial system than last year.
- Citigroup (NYSE:C), BofA (NYSE:BAC) and Wells Fargo (NYSE:WFC) all face higher capital surcharges after they rose in the Financial Stability Board's latest ranking of the most systemically important banks in the world, while HSBC, Barclays (NYSE:BCS) and Morgan Stanley (NYSE:MS) saw their buffer levels fall.
Wed, Nov. 16, 12:33 PM
- “Take profits and selectively reduce exposure,” says Baird's David George, pulling his Outperform rating on Bank of America (BAC -1.9%) after the stock blasted through his $17 price target.
- BofA is higher by nearly 20% since the election, and by more than 60% since late June.
- The rally over the last few sessions alone has priced in higher rates, lower taxes, and more aggressive capital return, he says, and he advises investors to wait and actually see if structural improvement in macro trends actually materializes.
- George also cuts Capital One (COF -2.9%) to Neutral from Outperform, and Fifth Third (FITB -3%) to Underperform from Neutral.
- Previously: Sell-side takes profits on banks (Nov. 16)
Tue, Nov. 15, 9:18 AM
- This just in ... Bank of America (NYSE:BAC) is a $20 stock again. With the post-election surge in the shares now nearing 20%, BofA closed at $20.08 yesterday - the first time above $20 in a lot of years.
- Guggenheim is heading to the cashier's cage, downgrading to Neutral from Buy.
- Kicking off the BAML Futures of Financials Conference, COO Tom Montag is optimistic about growth and higher interest rates. Commenting on the markets business - which bounced back in a big way in Q3 - Montag says Q4 is going pretty well, but not as strong as the last quarter. On a year-over-year basis, though, Montag expects Q4 trading revenue to top last year's by double digits (via WSJ's Liz Hoffman).
- Shares -1.5% premarket to $19.78.
Mon, Nov. 14, 9:53 PM
- Bruce Berkowitz's Fairholme Fund showed ownership of 1.7M common shares of Bank of America (NYSE:BAC) as of Sept. 30 - that's down from 13M three months earlier. As for the TARP options, Fairholme held about 14.5M of them, down from 17.3M.
- Berkowitz cut his holdings of AIG TARP options to 4.4M from 5.3M the previous quarter.
- SEC form 13F
Mon, Nov. 14, 3:47 PM
- Unsurprisingly given their run of late, financials dominate the list:
- Bank of America (BAC +5%)
- Citigroup (C +1.5%)
- Citizens Financial (CFG +3.1%)
- Discover (DFS +3.1%)
- First Republic (FRC +2.5%)
- Goldman Sachs (GS +2.2%)
- Humana (HUM +3%)
- Manulife (MFC +2.9%)
- Northern Trust (NTRS +3%)
- PNC Financial (PNC +1.7%)
- Regions Financial (RF +6.5%)
- Schwab (SCHW +1.6%)
Mon, Nov. 14, 7:27 AM
- Rates are flying across the globe again this morning, with the U.S. 10-year Treasury yield up 10 basis points to 2.25%.
- Though S&P 500 futures are flat, financial names are set for another big open. Premarket: Bank of America (NYSE:BAC) +1.4%, Citigroup (NYSE:C) +1.1%, JPMorgan (NYSE:JPM) +0.75%, Wells Fargo (NYSE:WFC) +0.7%. The XLF +0.6%
Thu, Nov. 10, 11:03 AM
- For now, the 10-year Treasury yield is holding onto the huge gain in posted yesterday, up two basis points today to 2.086%. TLT -0.4%, TBT +0.8%. Fed Funds futures have priced in about a 100% chance of a December rate hike.
- The yield curve has shifted both higher and steeper - pure manna for the companies that borrow short and lend long. There's also a new sheriff coming to town, and bank investors are no doubt mulling an eased regulatory regime. KBE +2.45%, KBE +2.4%
- Bank of America (BAC +3.5%), Wells Fargo (WFC +4.5%), JPMorgan (JPM +3.1%). Underperformers among the TBTF players: Citigroup (C +1.1%), Goldman (GS +1.1%)
- Regional banks: Regions (RF +4.2%), PNC Financial (PNC +3.3%), Fifth Third (FITB +1.7%). Online brokers: E*Trade (ETFC +2.9%), Schwab (SCHW +2.8%), Ameritrade (AMTD +2.6%), Interactive Brokers (IBKR +2.7%)
Wed, Nov. 9, 10:22 AM
- Banking stocks are ripping solid gains on the heels of the Republican party taking the White House and retaining control of Congress. The prospect of higher interest rates and lighter regulation is outweighing concerns over new U.S. trade policies.
- "Bank stocks have been besieged by Dodd-Frank regulations and a climate not conducive to supporting a stronger level of economic growth," observes Smead Capital Management.
- Notable gainers include SunTrustBanks (STI +2.9%), Comerica (CMA +3.5%), Wells Fargo (WFC +2.7%), State Bank Financial (STBZ +3.7%), First Republic Bank (FRC +3.3%), Barclays (BCS +2.8%), Credit Suisse (CS +1.6%).
- Then there's JPMorgan (JPM +3.2%) and Bank of America (BAC +3.2%) which just carved out new 52-week highs.
- The SPDT KWB (NYSEARCA:KBE) is up 2.66% on the day, while the SPDR KBW Regional Banking ETF (NYSEARCA:KRE) is 2.84% higher.
Wed, Nov. 9, 9:47 AM
- U.S. stocks opened only slightly lower as gains with the healthcare sector, major industrials and defense stocks helped to offset weakness with tech stocks and in the automobile industry.
- Financial are also performing well. The Financial Select Sector SPDR ETF (NYSEARCA:XLF) is up 1.65% on the day, led by sizable gains for Bank of America (BAC +4.5%) and JPMorgan Chase (JPM +3.1%).
- Financial ETFs: XLF, FAS, FAZ, KRE, UYG, VFH, KBE, IYF, BTO, KIE, IAT, IAI, IAK, IYG, FNCL, SEF, FXO, PFI, KBWB, QABA, KBWR, RYF, KBWP, KCE, FINU, KRU, RWW, XLFS, PSCF, FINZ, KRS, JHMF, WDRW, DPST, FAZZ, FNCF, FTXO.
Wed, Nov. 9, 4:19 AM
- Donald Trump's victory throws into question the core assumption the Fed will raise interest rates soon and follow with further gradual hikes over coming years.
- Banks are struggling on the news. Fed Funds futures are now pricing in less than a 50% chance of a December move and the ECB is likely to interpret the uncertainty with stimulus and lower rates for longer.
- Premarket movement: GS -8.3%, WFC -3.5%, C -3.2%, BAC -2.4%, CS -2.3% JPM -2.2%, LYG -1.8%, HSBC -1.7%, USB -1.4%, BCS -1.5%, ING -0.6%, MS, DB, RBS, UBS
Tue, Nov. 8, 10:46 AM
- Part of the big list of bank downgrades this morning is Bank of America (BAC -0.6%), cut to Hold from Buy by Detusche's Matt O'Connor. The price target remains $18, or roughly 7% upside from current levels.
- "Upside to the stock seems increasingly dependent on a pickup in economic activity, higher interest rates, and stronger capital market revenues as more company specific positives...seemed priced in," says O'Connor.
- BofA has run higher by nearly 40% since late June, but is still about flat on the year.
- Also downgraded by O'Connor after a nice run is Citizens Financial Group (CFG -2.4%).
- Previously: Banks open lower as sell-side turns cautious (Nov. 8)
Tue, Nov. 8, 8:29 AM
- JPMorgan (NYSE:JPM) and Deutsche Bank (NYSE:DB) both passed on selling shares of Uber (Private:UBER) to their high-net worth clients because the ride-share company wasn't willing to provide financial details about its business.
- The banks were concerned they wouldn't be able to sell the shares given the lack of specifics, according to Bloomberg.
- Bank of America (NYSE:BAC) and Morgan Stanley (NYSE:MS) ended up selling the shares earlier this year through their own wealth management units.
Thu, Nov. 3, 8:30 AM
- October monthly performance was: -1.8%
- 52-week performance vs. the S&P 500 is: -1%
- No dividends were paid in October
- Top 10 Holdings as of 9/30/2016: Apple Inc (AAPL): 4.64831%, Microsoft Corp (MSFT): 3.40563%, General Electric Co (GE): 2.05346%, Procter & Gamble Co (PG): 1.51815%, Intel Corp (INTC): 1.33113%, Pfizer Inc (PFE): 1.29305%, Wells Fargo & Co (WFC): 1.27332%, Bank of America Corporation (BAC): 1.19819%, Alphabet Inc C (GOOG): 1.19344%, Exxon Mobil Corp (XOM): 1.15839%
Thu, Nov. 3, 7:51 AM
- October monthly performance was: -0.39%
- 52-week performance vs. the S&P 500 is: +11%
- No dividends were paid in October
- Top 10 Holdings as of 6/30/2016: JPMorgan Chase & Co (JPM): 3.02927%, US Treasury Note 1.125%, Citigroup Inc (C): 2.72752%, Bank of America Corporation (BAC): 1.75979%, General Electric Co (GE): 1.64495%, Apache Corp (APA): 1.43672%, Merck & Co Inc (MRK): 1.40565%, Royal Dutch Shell PLC Class A (OTCPK:RYDAF): 1.39841%, Morgan Stanley (MS): 1.39796%, US Treasury Note 0.625%
Fri, Oct. 28, 7:06 PM
- To finance its $85B deal for Time Warner (NYSE:TWX) -- half of which is coming in cash -- AT&T's (NYSE:T) invited its "relationship banks" to join a $40B bridge loan, at around three ticket levels, Bloomberg reports.
- Based on ratings of Baa1/BBB+ (and AT&T's ratings are on negative watch at the credit rating firms), the loan pricing may open at L+112.5 basis points, with a 10 bp commitment fee, and upfront fees of 20-30 bps.
- The company has BofA Merrill Lynch (NYSE:BAC) and JPMorgan Chase (NYSE:JPM) on board to help finance the deal, though a $30B bond to help fund the deal won't be rushed as doubts remain about whether it will be completed.
- There's no reason to finance early given that ambiguity, a senior banker says. CreditSight analysts: "The merger may ultimately not be approved ... we feel the odds are around 50/50 at this stage."
- Some three-quarters of the financing is expected to take place in the investment-grade market. And doing the deal now rather than waiting for more regulatory certainty could end up more expensive for AT&T.