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SPDR S&P Bank ETF (KBE)

- NYSEARCA
  • 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
    | 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
    | 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
    | 4 Comments
  • Fri, Mar. 20, 2:04 PM
    • SPDR S&P Bank (NYSEARCA:KBE) announces quarterly distribution of $0.117.
    • 30-Day Sec yield of 1.53% (as of 03/18/2015).
    • Payable Mar 30; for shareholders of record Mar 24; ex-div Mar 20.
    | Comment!
  • 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
    | 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)
    | 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
    | 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
    | 16 Comments
  • Thu, Mar. 5, 4:33 PM
    | 12 Comments
  • Thu, Feb. 19, 3:22 PM
    • Bank managements like to make a big deal about cost savings thanks to the shift toward mobile banking, but an FDIC study finds the number of branches at insured institutions of 94,725 (as of June 2014) is lower by just 4.8% from the all-time peak in 2009.
    • There's little evidence, says the FDIC, that the emergence of mobile banking has substantially diminished the need for traditional bank branches.
    • So why the reasons for the closures (small as they are)? The FDIC notes net declines in branches have typically followed periods of financial distress - the Great Depression, the S&L crisis, and the most recent financial collapse quickly coming to mind.
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, SEF, IYG, FXO, FNCL, KBWB, QABA, FINU, KRU, RWW, KBWR, RYF, PSCF, FINZ, KRS
    | Comment!
  • Wed, Feb. 18, 2:49 PM
    • The financial sector had begun to turn around a dismal start to the year as February brought forth a string of hawkish Fed heads suggesting a June rate hike, but the XLF is lower by 0.8% after just-released FOMC minutes suggest markets and the hawks are getting ahead of themselves. KBE -1.7%, KRE -2%
    • The TBTFs: BofA (BAC -2.2%), JPMorgan (JPM -1.4%), Wells Fargo (WFC -1.6%), Ciitgroup (C -0.8%)
    • The regionals: Regions Financial (RF -1.6%), KeyCorp (KEY -1.6%), PNC Financial (PNC -1.3%), BB&T (BBT -1.5%), Fifth Third (FITB -1.6%), SunTrust (STI -1.7%), First Niagara (FNFG -2.1%), M&T (MTB -1.9%), U.S. Bancorp (USB -1.3%), First Horizon (FHN -2.7%).
    • Online brokerage: Schwab (SCHW -2.3%), E*Trade (ETFC -1.7%), Ameritrade (AMTD -1.1%), Interactive Brokers (IBKR -0.9%).
    • Previously: FOMC minutes: June rate hike not a slam dunk yet (Feb. 18)
    • 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
    | 41 Comments
  • Fri, Feb. 6, 9:50 AM
    • Financials have been mercilessly pounded in 2015 as hopes for higher interest rates looked like they might be dashed yet again, but today's blowout jobs number - firmly putting a June rate hike on the table - has brought in the dip-buyers.
    • The major averages are flat, but the XLF is up 1.4%. The Regional Bank ETF (KRE +2%) and the Bank ETF (KBE +2.1%) are doing even better.
    • Among the yield-starved banking names: Bank of America (BAC +3.1%), JPMorgan (JPM +2.6%), Citigroup (C +2%), Regions Financial (RF +4%), KeyCorp (KEY +3%), PNC Financial (PNC +2.9%), SunTrust (STI +2.3%), Zions (ZION +3.6%), Synovus (SNV +2.3%).
    • Insurers: MetLife (MET +2%), Prudential (PRU +3.2%), Lincoln National (LNC +4.6%). AIG (AIG +1.5%).
    • Trust banks: BNY Mellon (BK +2.7%) State Street (STT +1.9%), Northern Trust (NTRS +2.3%).
    • Online brokers (currently getting killed on money-market fee rebates): Schwab (SCHW +4.5%), TD Ameritrade (AMTD +3.5%), E*Trade (ETFC +2.1%).
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, IAI, SEF, IYG, IAK, FXO, FNCL, KBWB, QABA, FINU, KRU, RWW, KBWR, RYF, KBWP, KBWI, PSCF, FINZ, KRS
    | 49 Comments
  • Wed, Jan. 28, 2:21 PM
    • The 10-year Treasury yield sinks all the way to 1.75% following the FOMC statement which shows the central bank continuing on a path to rate hikes around mid-year. TLT +0.95%, TBT -1.9%
    • Yields at the short end aren't moving a lot and continue to price in a 25 basis point hike by the fall.
    • Stocks remain modestly higher, but financials (XLF -0.6%) - contemplating an even flatter yield curve - continue to underperform. KBE -1.1%, KRE -1.2%
    | Comment!
  • Sat, Jan. 24, 4:48 PM
    • The financial sector is off to a worse start to the year than even the energy names, with the XLF down 3.9% YTD vs. the XLE's 3.2% decline. The S&P 500 is roughly flat. The SPDR KBW Bank ETF (NYSEARCA:KBE) is off 7.5%, and the Regional Bank ETF (NYSEARCA:KRE) is lower by 6.9%.
    • Q4 earnings results haven't been wonderful, but financial names had been savaged well before those reports started coming out. Instead there's a difficult regulatory regime that won't quit, and - for now - it's looking like "wait'll next year" for the rising interest rates that were supposed to drive profit margins higher. The 10-year/2-year spread - already pretty low at 150 basis points to start the year - has narrowed to 137 bps.
    • A partial roll call of banks: Bank of America (NYSE:BAC-12.1% YTD, Citigroup (NYSE:C-10.1%, JPMorgan (NYSE:JPM-9.4%, Morgan Stanley (NYSE:MS-9.4%, Regions Financial (NYSE:RF) -14.7%, KeyCorp (NYSE:KEY) -4.5%, PNC Financial (NYSE:PNC-5.4%, Bank of New York (NYSE:BK-9.1%, Capital One (NYSE:COF) -6%, Discover (NYSE:DFS-13.6%.
    • Other spread-starved sector names: MetLife (NYSE:MET-9.8%, AIG (NYSE:AIG-8%, Prudential (NYSE:PRU-10.8%, Schwab (NYSE:SCHW-9.9%.
    • Some of what's working in financials: Blackstone (NYSE:BX+6.7%, E*Trade (NASDAQ:ETFC+1.2%, WisdomTree (NASDAQ:WETF+12.3%, Legg Mason +2.8%.
    | 28 Comments
  • Thu, Jan. 22, 12:35 PM
    • Mercilessly sold since the year turned, banks are putting in a rare session of outperformance, helped along by some earnings beats from regional lenders and the return of animal spirits in M&A with RBC's purchase of City National (CYN +18.6%) for $5.4B.
    • The XLF +1.4% vs. the S&P's 0.6% gain today, and the regional bank ETF (NYSEARCA:KRE) is higher by 3.1%.
    • Among today's reporters putting in big gains are KeyCorp (KEY +5.5%), BB&T (BBT +2.4%), and Huntington Bancshares (HBAN +2.6%), though Flagstar Bancorp (FBC -4.8%) missed estimates.
    • Others: Regions Financial (RF +3.9%), PNC Financial (PNC +1.6%), Synovus (SNV +3.2%), M&T Bank (MTB +3%), Hudson City (HCBK +3.1%), First Horizon (FHN +2.7%), and First Republic (FRC +4.9%).
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, IAI, SEF, IYG, FXO, FNCL, KBWB, QABA, FINU, KRU, RWW, KBWR, RYF, PSCF, FINZ, KRS
    • Among the TBTFs, Citigroup (C +2.7%) and Bank of America (BAC +2.5%) are leading the way.
    | 9 Comments
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The SPDR® S&P® Bank ETF, before expenses, seeks to closely match the returns and characteristics of the S&P® Banks Select Industry Index (ticker: SPSIBK). Our approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs.
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