SPDR® S&P Bank ETF
An investor’s guide to financial intermediation and key risks
Financial intermediation can result in concentration of risks that increase the fragility of the financial system. These risks are referred to as systemic risks.
How Does MGIC Investment Compare to Its Peers?
The peers outperformed MGIC Investment based on the forward PE ratio. However, MGIC is way ahead of its peers based on the PBV ratio.
First Horizon Reported Mixed Results in 3Q15
First Horizon National has a market cap of $3.23 billion. After the earnings report in 3Q15, it fell by 1.2% to close at $13.80 per share as of October 16, 2015.
How Does First Horizon National Compare to Its Peers?
First Horizon outperformed its peers based on the forward PE ratio and PBV ratio. The ETFs outperformed First Horizon based on the price movement.
Analyzing BB&T Corporation’s 6 Operating Segments
BB&T Corporation’s (BBT) operations are divided into six business segments. Community Banking contributes 46% to the total revenue.
Baupost Group Lowered Its Stake in Ocwen Financial
The Baupost Group lowered its position in Ocwen Financial (OCN) during 4Q14. The position accounted for 1.77% of the total portfolio in 4Q14.
Banks Relying Heavily on Interest-Related Income Suffered
In the third quarter, banks that relied heavily on interest-based income suffered, reporting record-low net interest margins.
Which Sectors to Avoid if Inflation Rises
Telecom services and utilities, the traditional dividend stars, have provided a fillip to US equities in 2016.
Why the yield curve impacts bank profitability
Historically, a flatter yield curve had an adverse impact on the financial institutions’ returns. It lowered their net interest margins. The Fed continues to stress an accommodative monetary policy. The policy and strong overseas demand have kept yields low at the long end of the curve. As a result, the difference between 30-year and five-year Treasury yields fell to 154 basis points on September 5, 2014.
Bill Gross: Unfortunately, We Aren’t Playing Monopoly
In Monopoly, the $200 of credit creation never changes. In the real economy, credit creation isn’t guaranteed to occur at the same pace each year.
Consumer Sentiment Index Surges to 2.9% Following Trump’s Win
In contrast, however, weak data were reported for U.S. employment, the preliminary University of Michigan Consumer Sentiment Index[2. The University of Michigan Consumer Sentiment Index is a consumer confidence index published monthly by the University of Michigan. The index is normalized to have a value of 100 in December 1964. Each month at least 500 […]
Analyzing Dodd–Frank’s Constraints in the US Financial Market
While Donald Trump wants to get rid of the Dodd–Frank Act, especially the Consumer Financial Protection Bureau, Hillary Clinton wants to retain it.
August’s Labor Force Participation Rate Came In at 62.8%
Both the labor force participation rate, which came in at 62.8%, and the employment-population ratio, which came in at 59.7%, were unchanged in August.
Could the Rise in Retail Sales and CPI Impact Portfolios?
The United States Census Bureau published the US retail sales report for June on July 15. Retail sales rose 0.6% in June on a month-over-month basis.
Wells Fargo: Capital Return Outpaces Its Peers
Wells Fargo (WFC) added 350 million shares to its share repurchase authorization in January 2016.
Wells Fargo: What Sets It Apart from Its Peers?
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.
GICS Sector ETFs: Investors Run for the Exits!
During last week’s volatile trading session, investors pulled money out of all but two US GICS Sector ETFs. All of the sectors closed in negative territory.
China’s Real Estate Bubble: George Soros Shows Why It Will Burst
According to George Soros, the Chinese property and construction bubble can grow and feed itself like in the United States in 2005–06.
How Will Bank of America’s Buyback Plan Impact Shareholders?
On March 18, 2016, Bank of America (BAC) reported that its board of directors has authorized the repurchase of shares worth $800 million.
How Honest Dollar Will Boost Tech Capacity for Goldman Sachs
Goldman Sachs (GS) is adding more technology to its investment banking arm with its acquisition of Honest Dollar, an Austin-based digital retirement savings tool.
A Look at the Role of the Consumer Financial Protection Bureau
The Consumer Financial Protection Bureau was established to protect consumers’ interests by implementing federal consumer financial laws.
How Zero-Bound Money Restricts Credit Growth
Credit growth has started to slow in the Us. From the 12% annualized growth rate of commercial and industrial credit in 2014, the rate is currently around 10.8%.
What Is the Dodd-Frank Act?
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.
Understanding the Fed’s Financial Regulations Post-2008 Crisis
Since the financial crisis, the Fed has enforced regulations for the capital strength and liquidity of 16 systematically important financial institutions.
US Banks’ Asset Quality Is Improving, Dodd-Frank Act Is Working
3Q15 earnings offered strong signs that the Dodd-Frank Act is working. Banks are focusing on building their balance sheets and enhancing asset quality.
US Banks’ Capital Market Revenues Fell in 3Q15
Global market uncertainty took a toll on US banks’ capital market revenues during 3Q15.
Banks Cut Costs and Improved Efficiency to Remain Profitable
In order to boost profitability in a low–interest rate environment, banks are reducing expenses by restructuring their businesses.
MGIC’s Revenue and Income Rose in 3Q15
MGIC Investment (MTG) has a market cap of $3.4 billion. After the earnings report in 3Q15, it rose by 4% to close at $10 per share as of October 15, 2015.
Is SunTrust Bank’s Stock Undervalued?
SunTrust Bank’s return on equity is 8%, which is 18% lower than the industry average.
BB&T to Expand Its Footprint in Ohio and the Mid-Atlantic Region
BB&T’s Susquehanna acquisition will significantly expand BB&T’s Mid-Atlantic footprint. The deal is valued at ~$2.5 billion. It will close in the second half of 2015.
BB&T’s Community Banking Is Impacted by Low Interest Rates
BB&T’s Community Banking segment offers a variety of loan and deposit products and other financial services. The segment’s net interest income decreased in 2014.
2008 financial crisis management—Dodd-Frank Act
As a result of the 2008 financial crisis, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010. The Act includes provisions for enhanced liquidity. It also includes provisions for capital and risk-management requirements for large financial intermediaries.
Analyzing the key trends at recent Treasury bill auctions
Last week, the week ended June 13, the U.S. Treasury held weekly auctions for four-week, 13-week, and 26-week Treasury bills for $30 billion, $25 billion, and $23 billion, respectively.