Banking

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.

Analysts have increased their short-term iron ore price forecasts due to stronger-than-expected temporary factors.

Lately, mortgage rates and bond yields have shown a weak correlation. Treasury yields have fallen over the past month, while mortgage rates have been steady.

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 […]

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 Walt Disney Company’s (DIS) theme parks and resorts business is doing extremely well in the United States.

After seeing three straight years of losses, gold (GLD) performed extremely well at the beginning of 2016.

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

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.

The Consumer Financial Protection Bureau was established to protect consumers’ interests by implementing federal consumer financial laws.

Disney expects the equity loss from its investment in Hulu to accelerate since Hulu is increasing its investment in acquiring original content from media companies and producing original programming.

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.

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.

The Dodd-Frank Act is a financial reform legislation passed in an attempt to prevent events similar to the 2009 financial crisis from occurring again.

Since the financial crisis, the Fed has enforced regulations for the capital strength and liquidity of 16 systematically important financial institutions.

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.

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.

Discover Financial Services (DFS) has two operating segments: Direct Banking and Payment Services. Payment Services is comparatively small.

Visa’s open-loop payments network connects and manages the exchange of information between issuers and acquirers.

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.

In the US, J.P. Morgan competes with Bank of America (BAC), Goldman Sachs (GS), and Morgan Stanley (MS), the leading players in investment banking.

J.P. Morgan Commercial Banking clients can access the Consumer and Community Banking segment’s commercial credit cards, payments services, and branch network.

Banks like US Bancorp (USB) and Wells Fargo (WFC) have an advantage over J.P. Morgan in terms of debt rating. Both banks secure higher ratings.