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Financial Select Sector SPDR ETF (XLF)

- NYSEARCA
  • Thu, Mar. 26, 4:37 PM
    • The big banks have had a rough start to the year, but surging trading volume in bonds, currencies, and commodities in Q1 could make for pleasant surprises when the lenders report quarterly results next month, writes John Carney.
    • The average daily trading volume across all U.S. bonds was up 10.6% Y/Y through the end of February, according to Sifma, with trading in corporate bonds up 18.1%, driven by a big rise in issuance. Trading in Fannie, Freddie, and Ginnie MBS was up 35.3% from a year ago.
    • Goldman Sachs (NYSE:GS) could be a particular beneficiary, as about 25% of its revenue is generated by FICC, and Credit Suisse sees the bank posting its first year-over-year increase in that unit's revenue since 2009.
    • Others of interest: Morgan Stanley (NYSE:MS), Bank of America (NYSE:BAC), Citigroup (NYSE:C), and JPMorgan (NYSE:JPM).
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, FXO, FNCL, FINU, KCE, RWW, RYF, KBWC, FINZ
    | 5 Comments
  • Tue, Mar. 24, 8:05 AM
    • At least so far, this year is looking a lot like the last few years to those waiting for higher interest rates to boost spread income. Writing in the company annual report, MetLife (NYSE:MET) CEO Steven Kandarian says the insurer continues to expect a 10-year Treasury yield of 4-4.5% by year-end 2017, but the risk remains of a miss to the underside.
    • If rates do stay low, says Kandarian, maintaining last year's 12% ROE over the long term would prove difficult. Investors, says Kandarian, should judge financial companies not on absolute ROE, but on the spread between ROE and 10-year yields.
    • It makes sense, writes John Carney, but sounds like a warning signal on returns going forward, not just for MetLife, but its insurance peers and the banks.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, KIE, SEF, IYG, IAK, FXO, FNCL, FINU, RWW, RYF, KBWP, KBWI, FINZ
    | 1 Comment
  • Fri, Mar. 20, 2:19 PM
    • Financial Select Sector SPDR (NYSEARCA:XLF) announces quarterly distribution of $0.091.
    • 30-Day Sec yield of 1.58% (as of 03/18/2015).
    • Payable Mar 30; for shareholders of record Mar 24; ex-div Mar 20.
    | Comment!
  • Thu, Mar. 19, 7:50 AM
    • Citigroup (NYSE:C), Goldman Sachs (NYSE:GS), and UBS are among the large lenders facing millions in losses on energy loans made last year. The lenders intended to sell the paper, but have had difficulty doing so even after cutting prices.
    • "We've been pretty shy about dipping back into energy names," says a loan-portfolio manager at DoubleLine, summing up the industry attitude.
    • It's a sizable setback for Wall Street (not to mention energy companies whose financing has dried up), which has earned $31B in energy company-related fees over the last five years, according to Dealogic.
    • Shades of the mortgage crisis? Not even close, say investors, as banks at the end of the housing bubble held hundreds of billions of dollars of souring mortgages and corporate paper on their books.
    • Source: WSJ
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, FXO, FNCL, FINU, KCE, RWW, RYF, KBWC, FINZ
    | 2 Comments
  • Wed, Mar. 18, 2:41 PM
    | 11 Comments
  • Tue, Mar. 17, 11:10 AM
    • A possible harbinger of things to come next month when the big banks report Q1 earnings, profits at Jefferies plunged in FQ1 (ended Feb. 28), with FICC, capital markets, and investment banking particularly weak.
    • Previously: Poor results at Jefferies sinks Leucadia (March 17)
    • Jefferies parent Leucadia is lower by 3.7%. Goldman Sachs (GS -1.1%), Morgan Stanley (MS -0.9%), JPMorgan (JPM -1.2%), Citigroup (C -0.1%), Bank of America (BAC -0.8%).
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, FXO, FNCL, FINU, KCE, RWW, RYF, KBWC, FINZ
    | 2 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, Mar. 5, 2:08 PM
    | 2 Comments
  • Thu, Mar. 5, 10:37 AM
    • The FRBNY used to be the banking industry's big daddy, but that power has shifted to Washington, writes Jon Hilsenrath, where a little-known committee run by Fed governor Daniel Tarullo wields the big regulatory stick.
    • Behind the move is a previously undisclosed 2010 paper known as the Triangle Document which put D.C. at the center of bank supervision, and the Fed there is making its presence felt.
    • During internal debates on a number of issues - including Ciit's CCAR failure and JPMorgan's London Whale loss - New York Fed examiners have been challenged by those in D.C., and at times have been shut out of policy meetings, and subject to public criticism by Tarullo, reports Hilsenrath.
    • The changes put FRBNY chief Bill Dudley in something of a vise - still open to criticism as it relates to bank oversight by Congressional gadflies like Elizabeth Warren, but maybe not really able to do anything about it. Publicly supportive of the new system, Dudley behind the scenes is working to restore his bank's reputation.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, SEF, IYG, FXO, FNCL, FINU, RWW, RYF, FINZ
    | 1 Comment
  • Fri, Feb. 20, 10:36 AM
    • "Animal spirits are on the up," says Citigroup. "Cash piles, cheap borrowing rates, an improving global economy and increasing CEO confidence should all boost activity again in 2015.”
    • With the global equity rally boosting the value of stocks to a record $67.1T, says the team, companies would need to spend $4T on M&A to close the gap between stock prices and deal-making - that would be up 43% from 2014.
    • More than $350M in deals have been announced so far this year.
    • Europe has the most potential for boosted M&A, as last year's activity was 52% below the 2007 for the region (not including the U.K.). Citi sees deals worth $800B this year vs. $470B in 2014.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, FXO, FNCL, FINU, KCE, RWW, RYF, KBWC, FINZ
    | Comment!
  • 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
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XLF Description
The Financial Select Sector SPDR® Fund, before expenses, seeks to closely match the returns and characteristics of the Financial Select Sector Index. Our approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs.
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Sector: Financial
Country: United States
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