Banking

Wells Fargo (WFC) is less exposed to the risky investment banking and trading business than its peers JPMorgan Chase (JPM), Citigroup (C), and Bank of America (BAC).

For Wells Fargo, net interest income makes up 53% of its total income while for JPMorgan Chase (JPM), net interest income makes up 46% of its total income.

JPMorgan Chase (JPM) and Wells Fargo (WFC) reported profits of $6.2 billion and $5.6 billion, respectively, in the most recent quarter.

Bank of America (BAC) is better positioned to gain from an interest rate hike than JPMorgan Chase (JPM). It’s more sensitive to interest rate changes.

Microsoft (MSFT) issued Aaa/AAA rated high-grade bonds worth $19.8 billion through seven parts on August 1, 2016.

Fallen angel bonds—high-yield bonds originally issued with investment grade credit ratings—are generally known for offering potential value. A big source of this value has been the tendency of fallen angels to be oversold below what may be considered fair value, leading to a downgrade to high yield. A less obvious source of value for fallen angels […]

PNC Financial’s non-interest income for 2Q16 increased by 10% over the previous quarter, mainly due to higher fee income growth.

On July 12, 2016, Celanese’s (CE) consensus 12-month target price was $76.30, indicating a return potential of 11.3% from that day’s closing price of $68.57.

The Federal Reserve’s stress test results indicate that Wells Fargo (WFC) has sufficient capital to absorb the estimated $25 billion in losses it is projected to incur under the test’s worst-case scenario.

Wells Fargo (WFC) is the largest mortgage lender in the US, operating primarily as a retail and commercial bank. It is been the most profitable bank in its peer group, posting a return of 10% on shareholder’s equity and ~1.3% on assets in 2015.

Wells Fargo (WFC) has been considered the strongest and most steady among the “too big to fail” banks in the United States for years.

In 1Q16, Wells Fargo’s revenue grew 4% to $22.2 billion. Bank of America’s (BAC) revenue fell 7% YoY (year-over-year) to $19.5 billion.

Bank of America’s (BAC) earnings are extremely sensitive to interest rate changes. Low interest rates have weighed on the bank’s top line.

The US Department of the Treasury conducted the weekly auction of four-week Treasury bills (or T-bills) on April 26.

China’s love for gold is world famous, and demand had touched its peak in 2013 when gold experienced a steep price fall.

The U.S. Department of the Treasury auctioned 13-week T-bills worth $28 billion on April 11. The offer amount of these bills was the same as the previous auction.

The U.S. Department of the Treasury conducted the weekly auction of 13-week Treasury bills on February 16, 2016. The total issuance was worth $37 billion.

European stocks began the year with a lot of hope pinned on them for providing capital appreciation in the year.

The U.S. Department of the Treasury held the weekly 26-week Treasury bill auction on February 16, 2016. T-bills totaling $30 billion were on offer.

The American Funds EuroPacific Growth Fund (AEPGX) has been in existence since April 1984.

Originally incorporated in 1892, General Electric is one of the largest and most diversified industrials and financial services corporations in the world.

High-yield bonds, also known as Junk bonds, have an iffy repayment ability, even if they are at the higher end of the junk rating scale.

Investment-grade bond yields rose 8 basis points month-over-month and ended at 3.5% on November 30 due to high expectations of an interest rate hike in the December policy meeting.

PLVVX holds fixed income securities in both long and short positions. The fund also holds derivative forward, future, and swap agreements on government securities, indexes, and currencies.

Greece’s debt was around 250 billion euros. It’s nearly 175% of its 2013 GDP figures. The GDP could fall more in 2016. The debt crisis started in 2010.

The EU’s (European Union) GDP (gross domestic product) depends on the service sector. The service sector contributes ~73.90% towards the EU’s (EZU) GDP.

The US Dollar Index measures the strength of the US dollar against other major currencies. It fell by 0.58% on December 18, 2015. It was on a correction mode.

Analysts who favor the Dodd-Frank Act believe it will protect the investing community and consumers. Critics believe it will hamper economic growth and hurt competitiveness.

During the period between September 2008 and March 2009, US stock markets plunged, and the financial sector fell 60% in value.

Preferred stocks are less volatile compared to common equities. This is mainly because a larger portion of the returns comes from dividends, which tend to be stable.

Deutsche Bank operates under five segments. Corporate Banking & Securities contributes 50% to Deutsche Bank’s revenues.

On average, European banks have higher leverage than US banks. An excess buildup of leverage increases a bank’s exposure to the risk of bankruptcy.

On August 20, 2015, Oracle (ORCL) announced the acquisition of Maxymiser. The financial details of the deal weren’t disclosed.

Goldman Sachs engages in asset management, investment banking, wealth management, institutional sales, and trading activities across asset classes as well as regions.

Goldman Sachs’ major services in the division include offerings related to interest rate products, credit products, mortgages, currencies, and commodities.

Morgan Stanley divides its non-interest expenses into compensation and non-compensation. It’s compensation expenses (and benefits) are ~80% of this class.

The G10 currencies were impacted positively as the US dollar index dropped in value in the two weeks ending August 21, 2015.

The ideal loan-to-deposit ratio for a bank depends on the bank’s business model. Some banks that focus on core banking, like U.S. Bancorp (USB), have high loan-to-deposit ratios.

Refinancing activity affects prepayment speeds. Prepayment speeds occur because homeowners are allowed to pay off their mortgages early and without penalty.

Certain industries typically outperform at various phases of business cycles. This provides important clues to investors and helps them manage their portfolios.