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Financial Select Sector SPDR ETF (XLF)

- NYSEARCA
  • Jul. 2, 2014, 12:31 PM
    • Global M&A deals in H1 totaled $1.571T, according to Mergermarket, up 56% over the same period in 2013, and up 29.8% from last year's 2nd half. in the U.S., $694.6B of deals in H1 nearly doubled that of one year prior. European deals of $453.6B gained 35.5%, and Asian deals of $286.7B rose 56.8%.
    • The M&A boom could help offset at least some of the widely expected continued trading slowdown this quarter (banks begin reporting their Q2s in about 10 days), and Goldman (GS +0.1%) tops the advisor tables with $533.8B in deals in H1, up 112% from a year ago. With $495.6M (up 180.4% Y/Y), Morgan Stanley (MS +0.5%) in in 2nd place. In third place, Bank of America (BAC +2.3%) deals grew 141.7%, and in fifth place, Citigroup (C +1.5%) saw a 177.2% boost in deals. JPMorgan (JPM -1.1%) took 4th place with $324.8B in deals, but saw just a 25.3% rise.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, FXO, FNCL, FINU, KCE, RWW, RYF, KBWC, FINZ
    | 3 Comments
  • Jun. 26, 2014, 3:11 PM
    • "Five years ago, if the risk group recommended against a strategy or product, it might just be one part of a debate," says Wells Fargo (WFC -0.4%) chief risk officer Michael Loughlin. Now, "when we say no, it's usually no."
    • The naysayers are gaining power and multiplying across the banking industry as lenders bow to pressure from regulators to simplify and make safer their operations in the hope of preventing the next financial collapse. For its part, Wells has 2.3K employees in its core risk-management department, up from 1.7K two years ago, and the unit's annual budget has doubled to $500M over that period. Earlier this year, Goldman Sachs (GS -0.2%) made its chief risk officer part of the trader/rainmaker-dominated company management committee for the first time ever.
    • The changes are expensive and come at a time of sluggish loan growth and trading revenue, but the banks have no choice as regulators wield the power given them by Dodd-Frank.
    • KeyCorp (KEY +0.1%), for instance, used to pay loan officers for meeting  profit goals. Now those bonuses can be lost if their work falls short of new risk-management standards. It's no doubt one factor behind sharply lower loan commitments for construction and real-estate development.
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAI, IAT, SEF, IYG, FXO, KBWB, FNCL, RKH, QABA, FINU, KCE, KRU, KBWR, RWW, RYF, KRS, KBWC, FINZ
    | 4 Comments
  • Jun. 25, 2014, 2:52 PM
    • The quest for yield is winning out over regulator efforts to clamp down on risky lending, as an OCC report finds signs of rising credit risk in the banks. The agency notes two areas in particular - leveraged loans and indirect auto loans.
    • Leveraged loans are essentially the banker version of high-yield bonds and indirect auto loans are banks financing car loans through an auto dealer.
    • 2013's issuance of covenant-lite leveraged loans - which strip away some protection for the lenders - hit $258B in 2013, about equal to the total amount issued between 1997 and 2012.
    • "Banks are looking for asset classes that performed better during the last crisis," says the OCC's Darrin Benhart. "The concern of course is that the previous crisis is not always the best indicator of what issues may happen next."
    • Full report
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, SEF, IYG, FXO, KBWB, FNCL, RKH, FINU, QABA, KRU, KBWR, RWW, RYF, KRS, FINZ
    | 3 Comments
  • Jun. 20, 2014, 9:51 AM
    • Financial Select Sector SPDR ETF (XLF) announces quarterly distribution of $0.0896.
    • 30-day SEC yield of 1.44% (as of 06/18/2014).
    • Payable June 30; for shareholders of record June 24; ex-div. June 20.
    | Comment!
  • Jun. 18, 2014, 9:10 AM
    • Sometimes providing an early window into the results for publicly traded investment banks, Jefferies Group - owned by Leucadia National (LUK) - posted a 55% surge in earnings to $61.3M for the quarter ended May 31. Revenues gained 9.8%.
    • Fixed-income trading revenue fell just 5%, and overall trading revenue rose 6.5% thanks to a 25% jump in equities trading. Investors are bracing for double-digit declines from the larger banks.
    • Investment banking revenue of $331.M grew 19%, with capital markets revenue of $230.7M up 23%, and CEO Richard Handler says Jefferies is continuing to grow the headcount on its investment banking team.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, FXO, FNCL, FINU, KCE, RWW, RYF, KBWC, FINZ
    | Comment!
  • Jun. 16, 2014, 11:52 AM
    • A guarded "no," argue KBW's Frederick Cannon and Matthew Dinneen. "It is beginning to be difficult to envision an environment where earnings headwinds, regulatory pressure, the structure of interest rates and investor sentiment get worse for universal banks ... [Further] credit conditions are likely to improve through 2015. Thus it is a good time, in our view, for contrarians to take another look at universal banks."
    • RBC's Jonathan Golub has 4.5 reasons to like the banks: 1) Rising rates will benefit; 2) Loan growth is set to accelerate (the team notes eased C&I lending standards); 3) Capital returns; 4) Credit improvement; 4.5) M&A activity is picking up, through trading business remains sluggish.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, FXO, FNCL, FINU, KCE, RWW, RYF, KBWC, FINZ
    | 1 Comment
  • Jun. 6, 2014, 10:42 AM
    • Pushing back against French disgust over the possible $10B fine to be levied against BNP Paribas (BNPQF +0.6%), sources at Justice let leak to Reuters that they initially wanted a $16B penalty.
    • To put the $10B in perspective, BNP earned about $11.2B last year, and getting a $2B slice of that $10B will be the NY State Dept. of Financial Services, whose annual budget is $552M. BNP has reserved $1.1B against the fine.
    • Forgetting the Hollande government for a moment, bank executives are no doubt looking on in alarm at these massive fines being tossed about like nickels and dimes. "I think everyone realizes that it's an exuberant market," says a defense lawyer who has been involved in settlements with the DOJ. Maybe the banks should just take their chances at trial?
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, FXO, FNCL, FINU, KCE, RWW, RYF, FINZ, KBWC
    | 3 Comments
  • Jun. 3, 2014, 9:07 AM
    • With multi-billion dollar penalties for banks being thrown about like nickels and dimes - the latest being BNP Paribas facing a $10B hit - the ECB is considering adding the impact of fines to its stress tests, reports the WSJ.
    • The ECB is trying to asses whether lenders have set enough aside in reserves for the payouts. If banks were to be found wanting, it could mean the need for additional capital raises. BNP makes a good example: In February, it said it had $1.1B reserved for the U.S. penalty, but two months later warned this may not be nearly enough. Now the figure is up to $10B, and executives at banks all over are watching nervously.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, SEF, IYG, FXO, FNCL, FINU, KCE, RWW, RYF, FINZ, KBWC, EUFN
    | 3 Comments
  • May 28, 2014, 2:16 PM
    • The agency will have fewer of its people stationed in the offices of the largest U.S. banks, instead bringing the workers back to OCC offices where they can develop a broader perspective on what may be happening in the financial system.
    • The move comes after Comptroller Thomas Curry - who took the reins in 2012 - brought in external consultants to review  the OCC's examination program which failed to sniff out much in the way of systemic risk ahead of the financial crisis.
    • This action stands in contrast to that of regulators like the FRBNY (which also whiffed on the financial crisis), which is boosting its on-site presence at banks.
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAI, IAT, SEF, IYG, FXO, FNCL, KBWB, RKH, QABA, FINU, KRU, KBWR, RWW, RYF, KRS, FINZ
    | 1 Comment
  • May 28, 2014, 1:05 PM
    • Banks' Q1 net income of $37.2B fell 7.7% from a year ago, according to the FDIC, which took the measure of 6,730 U.S. lenders. It's just the 2nd time in the last 19 quarters that Y/Y income has declined.
    • Behind the fall was a plunge in mortgage business, with income from the sale, securitization, and servicing of 1-4-family mortgages of $3.5B falling from $7.5B in 2013. Bank trading revenue also took a hit - falling 18.3% from a year ago.
    • FDIC Press Release
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, SEF, IYG, FXO, FNCL, KME, FINU, RWW, RYF, FINZ
    | 1 Comment
  • May 21, 2014, 3:10 PM
    • It's only about the "fifth inning" of mortgage investigations, says Michael Stevens, in a phrase likely to send a chill through the boardrooms of banks across the country. Stevens is the FHFA's acting inspector general, and Bloomberg's Jody Shenn - in attendance at the MBA event where Stevens is speaking - says there was a "loud, collective gasp" from the crowd when he uttered that line.
    • Stevens says investigators have found improper actions "not only occasionally, but in the end, with almost every" deal examined. “I don’t see anything in the near future that’s going to wipe the slate clean with all of the investigations.”
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAI, IAT, SEF, IYG, FXO, FNCL, KBWB, KME, RKH, FINU, QABA, KRU, KBWR, RWW, RYF, FINZ, KRS
    | 3 Comments
  • May 20, 2014, 2:54 PM
    • "Multiple currencies" have been subject to attempted manipulation, says Raimund Roseler, head of banking supervision at Germany's BaFin. Those targeted tended to be the smaller currencies as opposed to large ones like the dollar and euro, he adds.
    • The news comes on the same day the EU charged three banks for anti-competitive behavior in interest rates and one day after Credit Suisse plead guilty to U.S. charges of tax evasion. Two months back, Swiss competition watchdog Weko became the first regulator to claim it had spotted illegal activity in currencies.
    • “We see continued deterioration of the litigation environment especially in the U.S.," said Deutsche Bank CFO Stefan Krause yesterday. Indeed.
    • Previously: EU charges trio of banks over rate-rigging
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, PFI, FXO, FNCL, KBWB, FINU, KCE, RWW, RYF, PSCF, FINZ, KBWC
    | Comment!
  • May 16, 2014, 2:57 PM
    • The KBW Bank Index (ETF: KBE) is off about 8% from early April, with the performance of high-profile members like BofA, JPMorgan, Citigroup, Goldman is even worse (though Wells Fargo remains close to an all-time high).
    • It used to be, writes Michael Santoli, bank stock action was key to gauge the broader health of the market, but few are fretting now. Instead attention is being paid to the slides in the Russell 2000, high-flying growth names, and Treasury yields.
    • Rather than saying anything about the economy, the drop in bank shares could be more about thinning out an easy trade (long) that got too crowded. The latest BAML fund manager survey shows pros as big sellers of bank names in the last few weeks, dropping their allocations to a 10-month low. Even with the selling, their exposure to the sector remains far above the national average.
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, SEF, IYG, PFI, FXO, FNCL, KBWB, RKH, QABA, FINU, KRU, RWW, KBWR, RYF, PSCF, FINZ, KRS
    | 1 Comment
  • May 5, 2014, 10:20 AM
    • A check of the global banks finds the group pacing market declines in morning action after Friday night's warning on Q2 trading revenue from JPMorgan (JPM -2.2%).
    • Nomura's Steven Chubak is first out with lower JPMorgan earnings estimates.
    • Jim Cramer sums up sentiment: "This has been a house of pain. You can't own these right now. You just can't."
    • Morgan Stanley (MS -1.9%), Goldman Sachs (GS -1.5%), Citigroup (C -1.2%), and Bank of America (BAC -1%), Deutsche Bank (DB -1.2%). Far less trading dependent than the other Too Big Too Fails is Wells Fargo (WFC -0.2%).
    • The iShares DJ U.S. Broker-Dealer ETF (IAI -1.2%)
    • XLF -0.7%, KBE -0.8%
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, PFI, FXO, FNCL, KBWB, FINU, KCE, RWW, RYF, PSCF, FINZ, KBWC
    | 16 Comments
  • Apr. 28, 2014, 11:57 AM
    • Financial ETFs are the worst performers today thanks to Bank of America's near 5% dive in the wake of the suspension of its capital return plan. BofA is a top-10 holding of no fewer than 28 of about 880 equity-based ETFs tracked by S&P Capital IQ.
    • The Financial Sector SDRP (XLF -0.8%) has 6.35% of its AUM in Bank of America, the Vanguard Financials ETF (VFH -0.4%) has a 5.1% weight, and the iShares U.S. Financials ETF (IYF -0.4%) 4.8%. The SPDR KBW Bank ETF (KBE -0.9%) has a 1.92% weighting.
    • Previously: Black eye: BofA suspends buyback, dividend hike
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, PFI, FXO, FNCL, KBWB, FINU, RWW, RYF, PSCF, FINZ, KBE
    | 1 Comment
  • Apr. 25, 2014, 7:41 AM
    • Bank of America (BAC) is 1.1% lower in premarket action after last night's leak of the DOJ seeking more than another $13B out of the hide of shareholders over legacy mortgage issues, according to Bloomberg. The settlement would come on top of the $9.5B agreed to by the bank to resolve FHFA claims, and a deal could come within the next two months, according to sources.
    • Most of the loans in question became BofA's problem after it purchased Countrywide and Merrill Lynch - one made the punk loans and the other packaged them into MBS.
    • This deal - which would also resolve state AG charges - would tower over JPMorgan's eye-popper of a $13B settlement from last year, which included $4B for the FHFA.
    • They're coming for your banks next: There are another eight lenders under investigation by the DOJ and state attorneys general over similar charges.
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAI, IAT, SEF, IYG, PFI, FXO, KBWB, FNCL, RKH, QABA, FINU, KRU, RWW, KBWR, RYF, PSCF, FINZ, KRS, AIRR
    | 45 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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