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PowerShares KBW Bank Portfolio ETF (KBWB)

- NYSEARCA
  • Today, 2:47 PM
    • The dream of higher interest rates is looking a little fuzzier at the moment, as China leads markets lower again, and the Fed's Eric Rosengren suggests the conditions for a rate hike have still yet to be met. If Friday's payroll number disappoints - and there's at least some reason to expect that - a Sept. move looks off the table.
    • The Financial SPDR (NYSEARCA:XLE) is down 3% vs. the S&P 500's 2.3%.
    • Life insurers: MetLife (MET -3.7%), Prudential (PRU -3.9%), Lincoln National (LNC -4.2%)
    • Money-center banks: Citigroup (C -4.4%), JPMorgan (JPM -3.6%), Wells Fargo (WFC -3.8%)
    • Regional banks: U.S. Bancorp (USB -4.3%), Regions Financial (RF -4.1%), KeyCorp (KEY -4.3%), SunTrust (STI -4.2%), M&T Bank (MTB -4.2%)
    • Online brokerage: E*Trade (ETFC -4.8%), Schwab (SCHW -3.8%), Ameritrade (AMTD -3.4%)
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, IAT, SEF, IYG, FXO, FNCL, KBWB, QABA, FINU, KBWR, KRU, RWW, RYF, FINZ, KRS
    | Today, 2:47 PM | 10 Comments
  • Wed, Jul. 22, 3:01 PM
    • The OCC yesterday gave the green light to CIT Group's $3.4B purchase of OneWest Financial, and earlier this month regulators approved BB&T's $2.5B acquisition of Susquehanna Bancshares.
    • Possibly lifted now is concern nearly any sizable deal would get nixed (or delayed to death) by D.C. a la M&T's attempt to purchase Hudson City Bancorp (originally announced three years ago).
    • Both the CIT and BB&T deals, however, were approved within a year of their announcement, maybe making the M&T/Hudson experience the outlier rather than the norm.
    • While it still appears unlikely much bigger deals could win approval, the path could be clear for smaller-to-medium sized lenders to do business. Drexel Hamilton's David Hilder believes the CIT approval is a "positive catalyst" for acquisitions of lenders with up to $25B in assets.
    • Previously: CIT Group gains after winning regulatory green light for OneWest purchase (July 21)
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, IAT, SEF, IYG, FXO, FNCL, KBWB, FINU, QABA, KRU, KBWR, RWW, RYF, PSCF, FINZ, KRS
    | Wed, Jul. 22, 3:01 PM | 1 Comment
  • Mon, Jun. 22, 2:44 PM
    • Financials sunk along with Treasury yields last week, but are seeing a strong bounce today alongside a ten basis point gain in the 10-year yield to 2.36%.
    • The XLF is up 1.6% versus the S&P 500's 0.7% gain.
    • Helping U.S. equity markets is movement toward a Greek debt deal which sent Europe's Stoxx 50 hurtling 4% higher on the session. Yields tumbled in the periphery, but are sharply higher in Germany as well as the U.S.
    • Yield-sensitive Bank of America (BAC +1.8%) is leading the TBTF names higher. In regionals: PNC Financial (PCN -0.2%), KeyCorp (KEY +1.2%), Regions Financial (RF +1.4%), SunTrust (STI +1.3%), First Niagara (FNFG +1.2%).
    • Life insurers: MetLife (MET +2%), Prudential (PRU +1.6%), Lincoln FInancial (LNC +1.4%). Online brokers: E*Trade (ETFC +3.3%), Schwab (SCHW +2.2%), Ameritrade (AMTD +1.3%).
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, KIE, IAT, SEF, IYG, IAK, FXO, FNCL, KBWB, QABA, FINU, KBWR, KRU, RWW, RYF, KBWP, KBWI, FINZ, KRS
    | Mon, Jun. 22, 2:44 PM | 13 Comments
  • Tue, Jun. 9, 2:45 PM
    • Yield-starved financial sector names were mercilessly punished to start 2015 as sharply falling interest rates in January again disappointed investors waiting for the return of some spread income.
    • The rout in bond prices since, alongside what now seems the near-certainty of the beginning of Fed rate hikes in as soon as three months has helped turn things around, and the sector - as measured by the Financial Select SPDR (NYSEARCA:XLF) - is now in the green for the year, and trails the S&P 500 by just about 150 basis points.
    • Among the notable movers today as the 10-year yield rises to another 2015 high: Bank of America (BAC +1.4%), Wells Fargo (WFC +1.2%), U.S. Bancorp (USB +1.4%), Regions Financial (RF +1.3%), Huntington Bancshares (HBAN +1.6%), KeyCorp (KEY +1.6%), PNC Financial (PNC +1.3%), M&T (MTB +1.1%), Bank of Hawaii (BOH +1.6%), First Horizon (FHN +1.2%), Lincoln National (LNC +1.1%), E*Trade (ETFC +0.9%)
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, IAT, SEF, IYG, FXO, FNCL, KBWB, FINU, QABA, KRU, KBWR, RWW, RYF, PSCF, FINZ, KRS
    | Tue, Jun. 9, 2:45 PM | 16 Comments
  • Fri, Jun. 5, 10:27 AM
    | Fri, Jun. 5, 10:27 AM | 34 Comments
  • Tue, Jun. 2, 3:31 PM
    • The averages are flat to negative this session, but yield-starved financials are digging the big jump in interest rates - the 10-year Treasury yield is up nine basis points on the session to 2.27%, and 15 bps for the week.
    • Previously: Yields surge as European deflation fears abate (June 2)
    • The Regional Bank ETF (KRE +1.3%) and the Bank ETF (KBE +1.2%).
    • Individual names: Regions Financial (RF +1.6%), New York Community Bank (NYCB +1.3%), Huntington Bancshares (HBAN +1.3%), KeyCorp (KEY +1%), Fifth Third (FITB +1.3%). Thought of as perhaps the most asset-sensitive of the large lenders, Bank of America (BAC +1%) is leading the TBTFs higher.
    • Life insurers: MetLife (MET +1.2%), Prudential (PRU +1.5%), Lincoln Financial (LNC +0.9%), Primerica (PRI +1.2%).
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, KIE, IAT, SEF, IYG, IAK, FXO, FNCL, KBWB, QABA, FINU, KBWR, KRU, RWW, RYF, KBWP, KBWI, FINZ, KRS
    | Tue, Jun. 2, 3:31 PM | 10 Comments
  • Tue, Apr. 21, 9:37 PM
    • "This whole discussion today about when interest rates move is torture for us,” said U.S. Bancorp (NYSE:USB) CEO Richard Davis on last week's earnings call. “I remain very optimistic for the economy … a little less optimistic for the bankers until interest rates start to move up.”
    • Earlier today, Regions Financial (NYSE:RF) and Fifth Third (NASDAQ:FITB) became the latest in a line of lenders reporting slimming net interest margins. For Regions, the average yield on its loan portfolio fell to 3.45% from 4.03% a year ago. "You’re trying to book the prudent loans that you have the opportunity to, but with the level of competition in the market, it’s hard to move those rates up absent some kind of interest-rate increase," said Regions chief Grayson Hall on the earnings call.
    • On average, U.S. banks with more than $10B in assets showed a NIM of 2.97% in Q4, the lowest level in 25 years according to the FDIC ... And it got worse in Q1. Six of the nine big commercial banks reporting so far - including Wells Fargo (NYSE:WFC) and PNC Financial - had Q1 margins lower than Q4.
    • Bank of America (NYSE:BAC) and Regions - two banks seen as particularly sensitive to interest rates - are unsurprisingly the worst performers in the KBW bank index (NYSEARCA:KBE) this year, off 13.9% and 9.3% respectively.
    • What to do? Regions, for one, is trying to emulate the Wall Street big boys by bulking up its wealth management and capital markets operations. And maybe there's some more fat to trim. “We’re going to turn up the heat on expenses…and we’ll see where we get to,” said PNC boss William Demchak on last week's conference call.
    • Source; WSJ's Peter Rudegeair
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, SEF, IYG, FXO, FNCL, KBWB, FINU, QABA, KRU, KBWR, RWW, RYF, FINZ, KRS
    | Tue, Apr. 21, 9:37 PM | 9 Comments
  • Fri, Apr. 17, 3:02 PM
    • "[Interest spreads] are unimaginably low for those of us who have followed this area for a long time,” says Nancy Bush of NAB Research.
    • While low rates have provided occasional income boosts at lenders thanks to bursts of refinancing and the related fees, that well may have run dry. Now banks must rely on the gap between what they pay for deposits and what they charge for loans, and at Wells Fargo the spread dropped below 3% for the first time in decades, and at JPMorgan, it's just 2.07% after falling another seven basis points in Q1.
    • On the expense side, the low-hanging fruit of big cuts following the financial collapse is gone, with at least some of it replaced by legal costs which won't quit and regulatory costs which look here to stay.
    • Mergers? One look at the 3-years-and-running battle to close Hudson CIty and M&T Bank is enough to make any management shy about pursuing large acquisitions.
    • Source: Ben McLannahan and Tom Braithwaite in the FT.
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, SEF, IYG, FXO, FNCL, KBWB, FINU, QABA, KRU, KBWR, RWW, RYF, FINZ, KRS
    | Fri, Apr. 17, 3:02 PM | Comment!
  • Wed, Apr. 1, 4:33 PM
    • Looking for some kind of growth wherever they can find it, banks are about to get their wish as Fair Isaac is set to launch a new credit scoring metric which should expand by tens of millions the field of those eligible to get credit.
    • The new score will pull payment histories for things like utilities to calculate credit scores for consumers who might otherwise not have one. Other things - like how often someone changes address - will be used to help calculate a score.
    • FICO and 10 unnamed credit card issuers have been testing the new score since November, and Fair Isaac intends to roll things out nationwide by year-end. Right now, about 15M of the 53M previously unscorable Americans can be scored using the new system.
    • Source: WSJ
    • Among those of interest: WFC, C, BAC, JPM, COF, DFS, AXP
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, SEF, IYG, FXO, FNCL, KBWB, QABA, FINU, KRU, RWW, KBWR, RYF, FINZ, KRS
    | Wed, Apr. 1, 4:33 PM | 16 Comments
  • Mon, Mar. 23, 12:29 PM
    • The Regional Bank Coalition is urging D.C. to remove the $50B threshold at which, under current Dodd-Frank rules, lenders are subject to boosted regulatory standards.
    • The fight thus far has centered on whether to raise that bar (something even the Fed appears to support) or scrap it altogether.
    • "Regional banks do not create systemic exposure through market making or complex networks of interconnected transactions with other financial firms," says the group.
    • Regional Bank Coalition website
    • The group: SunTrust (NYSE:STI), Regions Financial (NYSE:RF), Huntington Bancshares (NASDAQ:HBAN), Fifth Third (NASDAQ:FITB), Capital One (NYSE:COF), BMO Financial (NYSE:BMO), Compass (NYSE:BBVA), BB&T (NYSE:BBT), Bank of the West, and AmEx (NYSE:AXP).
    • ETFs: KRE, KBE, IAT, KBWB, QABA, KRU, KBWR, KRS
    | Mon, Mar. 23, 12:29 PM | 4 Comments
  • Wed, Mar. 18, 2:41 PM
    | Wed, Mar. 18, 2:41 PM | 11 Comments
  • Thu, Mar. 12, 7:37 AM
    • "There is no system anywhere in the world as absurd as the regulatory system set up in the U.S. to control the banking industry," says an on-point Dick Bove, after the release of the CCAR results.
    • The "basically nationalized" banks' balance sheets are now dictated by "hypothetical" situations created in the stress test, says Bove. "But it's not hypothetical if you force the banking companies to restructure their balance sheets to adjust to that hypothetical," he says, noting banks are now punished if they don't carry the proper mix of securities and loans in their portfolios - something that should be up to investors to do, not D.C.
    • XLF +0.4% premarket
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, IAI, SEF, IYG, FXO, FNCL, KBWB, QABA, FINU, KCE, KRU, RWW, KBWR, RYF, KBWC, FINZ, KRS
    • CCAR coverage on Seeking Alpha
    | Thu, Mar. 12, 7:37 AM | 39 Comments
  • Wed, Mar. 11, 11:22 AM
    • Last Thursday evening's stress test results were just the warm-up act for the CCAR decisions due today at 4:30 ET. While all 31 banks subjected to the extra scrutiny of the stress test passed, it doesn't mean the Fed will approve their capital return plans, and while some - Goldman Sachs, Zions, and Morgan Stanley - barely squeaked by, it doesn't mean the Fed won't approve their buyback and dividend proposals.
    • After the CCAR results are released, expect most of the group of 31 to announce their capital return plans.
    • For foreign lenders with U.S. units - Deutsche Bank and Santander come to mind - the Fed only has a say into what the subsidiary sends back to the parent, not what the parent ultimately returns to shareholders.
    • XLF +0.6%, KBE +0.45%, KR +0.4%.
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, IAI, SEF, IYG, FXO, FNCL, KBWB, QABA, FINU, KCE, KRU, RWW, KBWR, RYF, KBWC, FINZ, KRS
    • Previously: Stress test roundup: How the lenders stack up vs. last year (March 5)
    | Wed, Mar. 11, 11:22 AM | Comment!
  • Mon, Mar. 9, 3:55 PM
    • "The Fed has created a process that is prohibitively expensive for banks, produces little in the way of useful information for investors, and has almost no value in terms of public policy," writes Kroll Bond Rating's Chris Whalen of the just-concluded bank stress tests.
    • "Measuring the ability of a bank to absorb loss via retained earnings and capital is a straight-forward exercise that the Fed has needlessly complicated to the point of irrelevance."
    • Even for all of its complexity, the stress test fails to consider off-balance sheet vehicles, says Whalen, and these are what really caused the financial crisis. "No amount of capital can suffice to protect financial institutions and markets if the major banks are allowed to conceal liabilities via OBS transactions."
    • Finally: "Who is managing the bank during the three months required to assemble a response to the Fed’s stress test requirements?"
    • Don't sugarcoat it Chris, tell us how you really feel.
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, IAI, SEF, IYG, FXO, FNCL, KBWB, QABA, FINU, KCE, KRU, RWW, KBWR, RYF, KBWC, FINZ, KRS
    | Mon, Mar. 9, 3:55 PM | 1 Comment
  • Fri, Mar. 6, 9:46 AM
    • A turnaround from the action earlier this year - financials (XLF +0.9%) are marching higher in early action as the averages slip, as nervous investors buy back in following the stress test results. Also helping are surging interest rates following the strong jobs number.
    • Looking at a pretty broad screen of bank names, just two - Goldman Sachs and Zions, both of which barely passed the stress test - are lower. Among the others: Bank of America (BAC +3.7%), JPMorgan (JPM +1.1%), U.S. Bancorp (USB +1.6%), Regions FInancial (RF +2.3%), KeyCorp (KEY +2.7%), PNC Financial (PNC +2.3%), BB&T (BBT +2.4%), Fifth Third (FITB +2.2%), Comerica (CMA +3.8%), BNY Mellon (BK +2.9%).
    • Among those starved for higher rates: MetLife (MET +3%), Prudential (PRU +3.3%), Lincoln National (LNC +4.1%), AIG (AIG +1.4%),  Hartford (HIG +2%), E*Trade (ETFC +3.9%), Schwab (SCHW +4.4%), Ameritrade (AMTD +4.3%).
    • Previously: Futures slip after jobs number as yields and dollar soar (March 6)
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, IAI, SEF, IYG, IAK, FXO, FNCL, KBWB, QABA, FINU, KCE, KRU, RWW, KBWR, RYF, KBWP, KBWI, PSCF, KBWC, FINZ, KRS
    | Fri, Mar. 6, 9:46 AM | 16 Comments
  • Thu, Mar. 5, 4:33 PM
    | Thu, Mar. 5, 4:33 PM | 12 Comments
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KBWB Description
The PowerShares KBW Bank Portfolio (KBWB) is based on the KBW Bank Index. The Fund will normally invest at least 90% of its total assets in securities that comprise the Underlying Index. The Index is a float adjusted modified-market capitalization-weighted index that seeks to reflect the performance of companies that do business as banks or thrifts that are publicly-traded in the U.S. The Index is compiled, maintained and calculated by Keefe, Bruyette & Woods, Inc. and is composed of approximately 24 companies representing leading national money centers and regional banks or thrifts.
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Sector: Financial
Country: United States
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