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Wall Street’s Cloudy Quarter Has Some Rays of Sunshine
  + stars: | 2024-01-16 | by ( Telis Demos | ) www.wsj.com   time to read: 1 min
Debt underwriting was up by roughly a third year-over-year at several large banks, including Bank of America. Photo: Spencer Platt/Getty ImagesWall Street hardly ended last year with a bang. But given the challenges facing the other major business lines of the biggest banks, from lending to wealth management, trading and investment banking might prove to be their best bet in 2024. Across the five biggest Wall Street megabanks, investment-banking fees in the fourth quarter—from issuance of stocks and bonds, plus advising on mergers and acquisitions—were up about 3% year-over-year. The “green shoots” that were talked up after third-quarter results remain scarce, as the market enters a year of uncertainty for politics, interest rates and economic growth.
Persons: Spencer Platt, Organizations: Bank of America, Getty
Banks Can’t Count on Loans for Growth
  + stars: | 2024-01-13 | by ( Telis Demos | ) www.wsj.com   time to read: 1 min
Banks are looking at a more difficult environment for loans in 2024. Photo: etienne laurent/EPA/ShutterstockEven as the biggest banks have grown and diversified, lending remains a core part of their business. And it looks like that will get tougher this year. The outlooks that banks gave on Friday for 2024 net interest income—a measure of what they earn on yield from cash, loans and securities, minus what they pay in interest costs—were muted. JPMorgan Chase expects it to be about flat versus 2023, while Wells Fargo anticipates a potential decline of about 7% to 9%, and Citigroup expects their core net interest income to be “down modestly.”
Persons: Banks, etienne laurent, JPMorgan Chase, Wells, Organizations: JPMorgan, Citigroup
Digital Payments Are Having a Jolly Holiday
  + stars: | 2023-12-02 | by ( Telis Demos | ) www.wsj.com   time to read: 1 min
Buy now, pay later point-of-sale lending offered by Afterpay and others generated 42.5% more online spending on Cyber Monday this year than last year. Photo: Richard B. Levine/Zuma PressThis year’s Black Friday might not have been marked by stories of mobs of shoppers like in past years, but it made up for that drama digitally. In-store U.S. retail sales on Black Friday rose 1.1% over last year, according to Mastercard SpendingPulse, and e-commerce sales were up 8.5%. That might help give a second wind to digital payments stocks whose shares have struggled at times in the postpandemic era.
Persons: Afterpay, Richard B, Levine Organizations: Mastercard SpendingPulse
American Borrowers Are Getting Closer to Maxing Out
  + stars: | 2023-11-25 | by ( Telis Demos | ) www.wsj.com   time to read: 1 min
Some people are starting to consume more of their available credit from month to month. Photo: Angus Mordant/Bloomberg NewsA happy holiday shopping season might not end up being an especially cheery time for lenders. The trend suggests that consumers still are willing and able to use their cards, portending well for retailers. U.S. retail sales slowed in October, but by less than feared, and were still at an overall solid level. Some retail stocks have jumped recently on hopes for holiday shopping.
Persons: Angus Mordant, Goldman Sachs Organizations: Bloomberg, U.S
Private Equity, Now Featuring Less Equity
  + stars: | 2023-11-10 | by ( Telis Demos | ) www.wsj.com   time to read: 1 min
Blackstone is among the companies seeing increased demand for private credit. Photo: Jeenah Moon/ReutersGiants like Apollo , Blackstone and KKR made their names in the business of private equity. But today, the thing that investors seem most excited about is growth in their private credit businesses. Buyout fundraising has been slowed in part by the difficulty of exiting old deals. Real-estate funds have also been hit by worries about things like commercial property values.
Persons: Blackstone Organizations: Reuters Giants, Apollo, Blackstone, KKR
Pay-later provider Affirm, whose shares are up over 170% year to date, said it has added more buyers of loans to its funding platform. Photo: Gabby Jones/Bloomberg NewsHigher interest rates were supposed to put an end to the fast growth of buy now, pay later lenders. But right now they might actually be helping out. Unlike banks that fund their loans through their deposits, BNPL players that offer small loans and installments to shoppers need to get that money from the market, as do other nonbank financial-technology companies. So they are, in theory, more exposed to the cost of rising interest rates.
Persons: Gabby Jones Organizations: Bloomberg
Buy Now, Pay Later Is Surfing the Private Credit Wave
  + stars: | 2023-11-09 | by ( Telis Demos | ) www.wsj.com   time to read: 1 min
Pay-later provider Affirm said it has added more buyers of loans to its funding platform. Photo: Gabby Jones/Bloomberg NewsHigher interest rates were supposed to put an end to the fast growth of buy now, pay later lenders. But right now they might actually be helping out. Unlike banks that fund their loans through their deposits, BNPL players that offer small loans and installments to shoppers need to get that money from the market, as do other nonbank financial-technology companies. So they are, in theory, more exposed to the cost of rising interest rates.
Persons: Gabby Jones Organizations: Bloomberg
Robinhood No Longer Looks Like a Steal
  + stars: | 2023-11-08 | by ( Telis Demos | ) www.wsj.com   time to read: 1 min
Robinhood gained millions of users during the GameStop craze. But many have left as interest rates have gone up. CEO Vlad Tenev is now focused on growing Robinhood into more than just a trading app. Photo Illustration: Adam FalkRobinhood Markets may be building the brokerage of the future—and maybe it always will be. One big factor: The revenue momentum from higher interest rates is petering out.
Persons: Robinhood, Vlad Tenev, Adam Falk Robinhood Organizations: GameStop
Morgan Stanley’s James Gorman Picked a Good Time to Leave
  + stars: | 2023-10-28 | by ( Telis Demos | ) www.wsj.com   time to read: +1 min
James Gorman has spent nearly 14 years as Morgan Stanley CEO. Photo: Michael Bucher/The Wall Street JournalJames Gorman guided Morgan Stanley through years of superlow interest rates and booming stock markets. His successor, Ted Pick , might have to come up with some new ideas for a new era. Gorman, who will step down at the end of the year after almost 14 years as chief executive, bet big on wealth and asset management by absorbing all of Smith Barney and later buying E*Trade and Eaton Vance. And by valuation, Morgan Stanley has often been the leader of the pack, generally trading at a higher price-to-book ratio than even JPMorgan since the start of last year.
Persons: James Gorman, Morgan Stanley, Michael Bucher, Ted Pick, Gorman, Smith Barney, Eaton Vance, JPMorgan Chase Organizations: JPMorgan, JPMorgan Chase ’
Is It Time To Worry About Banks’ Business Lending?
  + stars: | 2023-10-24 | by ( Telis Demos | ) www.wsj.com   time to read: 1 min
Regional banks are facing the prospect of a slowdown in one of their bread-and-butter offerings, business lending. There has been much talk of risk centered on credit cards and offices, and not without reason. But these aren’t usually the most important kinds of loans to the typical regional bank. Instead, a core kind of lending for many of the large regionals is to enterprises.
What if Wall Street Doesn’t Bounce Back?
  + stars: | 2023-10-19 | by ( Telis Demos | ) www.wsj.com   time to read: 1 min
A lot is riding on megabanks’ highly profitable Wall Street arms to help sustain returns as deposit costs rise and credit losses emerge. Photo: Marissa Alper for The Wall Street JournalBankers tend to turn into gardeners when talking about the continuing dearth of mergers and other investment-banking deals. They mention “green shoots,” in the form of an acquisition here, or an initial public offering there, as hopeful signs of regrowth. But this analogy might be too delicate for today’s world. Between the low-growth economic outlook, surging Treasury yields and wars in Israel and Ukraine, the risk isn’t just that the soil is a bit dry.
Persons: Marissa Alper, Organizations: Wall Street Locations: Israel, Ukraine
Wall Street’s Green Shoots Risk Wilting
  + stars: | 2023-10-19 | by ( Telis Demos | ) www.wsj.com   time to read: 1 min
A lot is riding on megabanks’ highly profitable Wall Street arms to help sustain returns as deposit costs rise and credit losses emerge. Photo: Marissa Alper for The Wall Street JournalBankers tend to turn into gardeners when talking about the continuing dearth of mergers and other investment-banking deals. They mention “green shoots,” in the form of an acquisition here, or an initial public offering there, as hopeful signs of regrowth. But this analogy might be too delicate for today’s world. Between the low-growth economic outlook, surging Treasury yields and wars in Israel and Ukraine, the risk isn’t just that the soil is a bit dry.
Persons: Marissa Alper, Organizations: Wall Street Locations: Israel, Ukraine
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/finance/banking/bondholdings-become-less-of-a-burden-at-bank-of-america-and-other-big-banks-77ef0766
Persons: Dow Jones
Schwab Sees Potential Inflection Point to Cash Outflows
  + stars: | 2023-10-17 | by ( Telis Demos | ) www.wsj.com   time to read: 1 min
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/finance/investing/schwab-sees-potential-inflection-point-to-cash-outflows-24ad0781
Persons: Dow Jones, schwab
Big-Bank Profits May Be Higher, but for How Much Longer?
  + stars: | 2023-10-14 | by ( Telis Demos | ) www.wsj.com   time to read: 1 min
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/finance/banking/big-bank-profits-may-be-higher-but-for-how-much-longer-77f1db6e
Persons: Dow Jones
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/finance/banking/how-banks-deposit-pressures-could-get-worse-in-three-charts-3b59c51d
Persons: Dow Jones
What Could Finally Turn Around Citigroup?
  + stars: | 2023-10-09 | by ( Telis Demos | ) www.wsj.com   time to read: 1 min
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/finance/banking/what-could-finally-turn-around-citigroup-36ae885b
Persons: Dow Jones Organizations: citigroup, 36ae885b
Why 8% Mortgage Rates Aren’t Crazy
  + stars: | 2023-10-04 | by ( Telis Demos | ) www.wsj.com   time to read: 1 min
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/finance/investing/why-8-percent-mortgage-rates-arent-crazy-590d887f
Persons: Dow Jones
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/finance/investing/ending-the-ltcm-crisis-took-just-one-bailout-we-should-be-so-lucky-next-time-64f69b05
Persons: Dow Jones
Investors Keep Putting Money Into Private Credit
  + stars: | 2023-09-18 | by ( Telis Demos | ) www.wsj.com   time to read: 1 min
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/finance/investing/investors-keep-putting-money-into-private-credit-92298d7
Persons: Dow Jones, 92298d7
‘Almost All Loans Are Bad’—Why Banks Aren’t Lending
  + stars: | 2023-09-13 | by ( Telis Demos | ) www.wsj.com   time to read: 1 min
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/finance/banking/almost-all-loans-are-badwhy-banks-arent-lending-7b1f17eb
Persons: Dow Jones
The Bitcoin ETF Trade Is Increasingly About Bitcoin Itself
  + stars: | 2023-09-10 | by ( Telis Demos | ) www.wsj.com   time to read: 1 min
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/finance/regulation/the-bitcoin-etf-trade-is-increasingly-about-bitcoin-itself-1c8bfc8a
Persons: Dow Jones
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/personal-finance/interest-rates-investing-mortgage-banks-real-estate-debt-ca87c251
Persons: Dow Jones
Federated Hermes Can Fly as High Rates Linger
  + stars: | 2023-08-29 | by ( Telis Demos | ) www.wsj.com   time to read: 1 min
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/finance/stocks/federated-hermes-can-fly-as-high-rates-linger-412f7e20
Persons: Dow Jones
Investors Can Jam With Toast
  + stars: | 2023-08-25 | by ( Telis Demos | ) www.wsj.com   time to read: 1 min
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/finance/stocks/investors-can-jam-with-toast-14a88654
Persons: Dow Jones
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