Thu, Jun. 2, 7:45 AM
- May monthly performance was: +1.13%
- 52-week performance vs. the S&P 500 is: -3%
- No dividends were paid in May
- Top 10 Holdings as of 3/31/2016: JPMorgan Chase & Co (JPM): 2.92%, US Treasury Note 1.125%, Citigroup Inc (C): 2.72%, US Treasury Note 0.5%, General Electric Co (GE): 2.16%, Bank of America Corporation (BAC): 1.79%, Morgan Stanley (MS): 1.36%, Target Corp (TGT): 1.36%, US Treasury Note 1.625%, Carnival Corp (CCL): 1.29%
Wed, Jun. 1, 10:49 AM
Thu, May 26, 3:15 PM
- All banks in the team's coverage universe have plenty of room for capital return, says analyst John McDonald, expecting some to have sufficient cushions to be able to move payout ratios (dividends and buybacks) to close to 100% of earnings.
- Those most likely to have solid increases in payouts are Bank of America (NYSE:BAC), BB&T (NYSE:BBT), PNC FInancial (NYSE:PNC), and Citigroup (NYSE:C). Those with the least cushion are U.S. Bancorp (NYSE:USB), JPMorgan (NYSE:JPM), and Regions Financial (NYSE:RF).
Wed, May 25, 10:28 AM
- About half of all share sales by public companies this year have been block trades, writes Corrie Driebusch, versus an average of about one-third over the past five years, and just one-fifth over the past decade.
- To review, a block trade involves a bank buying a large chunk of stock from a company or its P-E backers at a discount, in the hopes of unloading it piece-by-piece later that day at a markup.
- The increase in block trades, of course, comes as business slows at any number of other bank profit centers, particularly fixed-income trading.
- For the most part, block deals have mostly proved profitable this year, with an average one-day return of 0.5%, according to Dealogic. The leaders in U.S. block trades this year are Credit Suisse (NYSE:CS) and JPMorgan (NYSE:JPM), with Deutsche Bank (NYSE:DB), Bank of America (NYSE:BAC), and Citigroup (NYSE:C) also notable participants.
Tue, May 24, 10:22 AM
- Stocks had already started the morning nicely in the green, but a blowout new home sales number for April has the homebuilders higher by about 2.5%, and the major indexes up by more than 1%.
- It's also got traders upping bets on a June rate hike, with another move to follow before year-end. That's boosting the yield-starved financials (XLF +1.5%), particularly the banks (KBE +2%).
- Among the financial movers: Bank of America (BAC +1.4%), JPMorgan (JPM +1.9%), Regions Financial (RF +1.8%), Fifth Third (FITB +2.1%), E*Trade (ETFC +2.9%), Interactive Brokers (IBKR +2.6%), MetLife (MET +1.8%), Prudential (PRU +2.2%), Lincoln National (LNC +1.8%), State Street (STT +2.1%)
Mon, May 23, 3:10 PM
- The ruling from the Court of Appeals for the Second Circuit reinstates previously thrown out private antirust lawsuits against 16 banks for allegedly rigging Libor.
- There are a number of groups of plaintiffs, including Baltimore, Houston, and San Diego.
- For now, the case goes back to lower court for further proceedings. If the suits are successful, the bill to banks could be several billion dollars.
- Roughly a dozen financial companies have already settled official charges of rate manipulation, with some pleading guilty to criminal charges.
- The defendants in line from today's ruling include: Bank of America (NYSE:BAC), Barclays (NYSE:BCS), Credit Suisse (NYSE:CS), Deutsche Bank (NYSE:DB), HSBC, JPMorgan (NYSE:JPM), Lloyds (NYSE:LYG), Royal Bank of Canada (NYSE:RY), SocGen (OTCPK:SCGLY), UBS, and Royal Bank of Scotland (NYSE:RBS).
Fri, May 20, 9:18 AM
- U.S. credit card balances are on track to climb over $1T this year, closing in on the all-time high of $1.02T set just before things fell completely apart in 2008.
- Slow, but steady economic growth, an improving job market, and lenders returning to offering credit to millions of subprime consumers are behind the numbers.
- Lenders will take it where they can get it, as credit cards are one of the few areas working for banks right now, thanks to low margins on ordinary lending and a secular decline in trading profits. For now, delinquency rates are low, and profits are set to rise even more alongside Fed rate hikes.
- Capital One's (NYSE:COF) strategy to boost card usage by raising spending limits and giving out new cards is paying off: The bank's customers spent 20% more on cards in Q1 this year than last. For Citigroup (NYSE:C), average balances posted their first Y/Y increase since 2008. Balances grew at Discover (NYSE:DFS) and JPMorgan (NYSE:JPM) as well.
- Even American Express (NYSE:AXP), whose customers typically pay it all off every month, is now focusing on lending to those who will keep a balance.
- Source: The WSJ's Annamaria Andriotis and Robin Sidel
Wed, May 18, 1:08 PM
- The meme of rates lower for longer has been stood on its head in the last 24 hours thanks to some decent economic data, but also surprisingly hawkish Fedspeak yesterday.
- The fixed-income world now believes remarks from the Fed's Williams and Lockhart yesterday may have been a preview of what we'll get when the real power speaks tomorrow - Fischer and Dudley - and then on May 27, when Janet Yellen gives a speech.
- Up at 2 ET are the minutes from the FOMC's April meeting.
- The 10-year yield is higher by five basis points to 1.82% and short-term rate markets have upped expectations for a Fed move this year.
- XLF +1.85%, KBE +3.15%, KRE +3.3%
- Bank of America (BAC +3.7%), Citigroup (C +4.2%), JPMorgan (JPM +3.2%), Wells Fargo (WFC +2.1%), U.S. Bancorp (USB +2.1%), Regions (RF +3.3%), KeyCorp (KEY +3.7%), PNC Financial (PNC +2.7%), Fifth Third (FITB +3.7%), Capital One (COF +1.9%), E*Trade (ETFC +4.4%), Schwab (SCHW +4.8%), MetLife (MET +2.9%), Prudential (PRU +3.4%), Lincoln National (LNC +4.2%), BNY Mellon (BK +2.3%), Northern Trust (NTRS +2.9%)
Wed, May 18, 11:12 AM
- Sweeping new compensation rules released by six federal agencies last month would free up pay restrictions for the BlackRock's (NYSE:BLK) of the world, while tightening them for banks like JPMorgan (NYSE:JPM), Wells Fargo (NYSE:WFC), Bank of America (NYSE:BAC), Morgan Stanley (NYSE:MS), and Goldman Sachs (NYSE:GS).
- Source: Bloomberg
- The result is likely an even stronger flow of talent exodus from the big banks and to outfits like BlackRock, Vanguard, Pimco, and Fidelity, to name four.
- “They keep making it more difficult to be a big bank,” says a D.C. attorney.
- At those lenders with more than $250B in assets, top management would have 60% of their bonuses deferred for four years. Tough, but even tougher are clawback provisions allowing banks to take back money up to seven years after bonuses vest.
- Though mammoth in size, the overwhelming majority of assets at BlackRock and the like are client, not proprietary assets. Thus, they aren't subject to the same restrictions. Franklin Resources (NYSE:BEN), for instance, has $743B in AUM, but only about $16B of its own assets. Blackstone (NYSE:BX) manages $344B, but only $22B of its own money.
Wed, May 18, 4:42 AM
- Major U.S. banks are scrutinizing security of the world's largest funds transfer system following cyber attacks in Bangladesh and Vietnam involving fraudulent transfer requests. They also want SWIFT to boost security in the wake of the attacks.
- JPMorgan (NYSE:JPM) has already limited SWIFT access to some employees amid questions about the breaches and to keep tighter control on its links to the service.
Tue, May 17, 4:52 PM
Thu, May 12, 12:33 PM
- Value-at-risk at JPMorgan (NYSE:JPM) jumped 50% amid Q1's volatility, reports Bloomberg. It's a figure standing in sharp contrast to declines of 25% or more at Bank of America (NYSE:BAC), Citigroup (NYSE:C), and Deutshce Bank (NYSE:DB), and smaller falls at UBS, Goldman Sachs (NYSE:GS), and Morgan Stanley (NYSE:MS).
- For Bank of America, it says the risk in its trading portfolio in Q1 was the lowest in any quarter since the Merrill Lynch merger in 2009.
- While cutting VaR reduces risk, it also limits profits, and in past times. notes a former Fed bank examiner turned college teacher, banks used episodes of higher volatility to step in and make money. In a Dodd-Frank world, making money in this fashion may not be received well by regulators.
Wed, May 11, 9:09 AM
- The banking outlook now is vastly improved from earlier this year, JPMorgan (NYSE:JPM) CEO Jamie Dimon tells CNBC's Squawk Box. "The name of the game is faster, cheaper, and better for our customers."
- Turning to the election, Dimon says it's hard to predict how it will affect the economy. "Some people grow into the job ... some people slow into the job."
- On the regulatory environment for banks: Slowly getting better.
Wed, May 4, 2:49 AM
- Seven of the world's largest banks have agreed to pay $324M to settle a U.S. lawsuit accusing them of rigging the "ISDAfix" benchmark for their own gain from 2009 to 2012.
- The illegal deals included the execution of rapid trades just before the rate was set each day, called "banging the close," to delay transactions and post rates that did not reflect market activity.
- The settlement resolves claims against BofA (NYSE:BAC), Barclays (NYSE:BCS), Citigroup (NYSE:C), Credit Suisse (NYSE:CS), Deutsche Bank (NYSE:DB), JPMorgan (NYSE:JPM) and the Royal Bank of Scotland (NYSE:RBS).
Mon, May 2, 7:25 AM
- April monthly performance was: +2.64%
- 52-week performance vs. the S&P 500 is: -1%
- No dividends were paid in April
- Top 10 Holdings as of 12/31/2015: JPMorgan Chase & Co (JPM): 3.18%, Citigroup Inc (C): 3.13%, General Electric Co (GE): 2.46%, US Treasury Note 1.625%, Bank of America Corporation (BAC): 1.94%, Morgan Stanley (MS): 1.58%, US Treasury Note 2.25%, Carnival Corp (CCL): 1.29%, PNC Financial Services Group Inc (PNC): 1.26%, Citizens Financial Group Inc (CFG): 1.26%
Sun, Apr. 24, 6:27 PM
- via Credit Suisse, the 15 hottest large cap "rising stars," followed by the number of large cap funds that own them, and the change vs. prior quarter.
- SYF - Synchrony Financial, 74 | 47
- MSFT - Microsoft, 350 | 36
- GOOGL - Alphabet 324 | 39
- MCD - McDonald's, 104 | 24
- DAL - Delta Air Lines, 114 | 19
- GPN - Global Payments, 34 | 19
- TSN - Tyson Foods, 61 | 18
- CVX - Chrvron, 180 | 17
- DFS - Discover, 90 | 16
- RTN - Raytheon, 85 | 16
- WFC - Wells Fargo, 250 | 16
- GIS - General Mills, 63 | 15
- JPM - JPMorgan Chase, 276 | 15
- URI - United Rentals, 36 | 15
- CBS - CBS Corp., 65 | 14
- CMCSA - Comcast, 223 | 14
- "We are wary of owning too many Rising Stars, as the potential for differentiation has diminished,"
JPMorgan Chase & Co. is a financial holding company that provides financial and investment banking services. It offers a range of investment banking products and services in all major capital markets, including advising on corporate strategy and structure, capital-raising in equity and debt... More
Industry: Money Center Banks
Country: United States
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