More From Jonathan Casteleyn, CFA
Taxable bond fund flow is still strong with tax free interest still low
Fixed income money flow continues to be dominated by the taxable category with only marginal interest by investors in the tax-free category
Level III assets have declined sharply at major banks including C, MS, and BAC
A substantial decline in the Level III assets as a percentage of total equity at the major investment banks is good for shareholders and the condition of bank balance sheets.
Average hours worked per week rebounding to ’07 highs, good for lower jobless claims
According to the Bureau of Labor Statistics (BLS), average hours worked per week is now near 2007 highs, which should bode well for a continued improvement in weekly jobless claims.
Morgan Stanley and Goldman have bigger bond exposure than Bank of America and Citi
Bond underwriting exposure could be risky for investment banking departments, as interest rates begin to rise and refinancing slows.
Market cap to AUM is a great valuation metric for asset managers
Like many things in life, size matters, and in the asset management industry this paradigm is no different. The market leader in client assets is clearly BlackRock.
Declines in S&P 500 correlation benefiting TROW, IVZ, and JNS
The concept of tracking the dispersion of stocks via a correlation reading may be a bit intimidating. However, the principle doesn’t involve a lot of grey matter.