Credit-card losses edge higher, bad news for U.S. banks

bank front photo
From Jennifer Surane: For the biggest U.S. banks, not all consumer debt is created equal.
NYSE:IYF May 1, 2019 6:00pm

Large U.S. banks see significant headwinds

bank sector
From JJ Kinahan:

Lower trading volume. Falling mortgage rates. An inverted Treasury yield curve. A slowing U.S. and global economy. The odds seem pretty stacked against big banks on multiple fronts as earnings season starts tomorrow.

NYSE:IYF April 11, 2019 6:16pm

Moody’s warns that the size of the US leveraged loan market is risky for banks

bank sector
From Wayne Duggan: Those who don't learn from history are doomed to repeat it, and Moody's Investors Service issued a warning to investors on Wednesday that U.S. banks are entering territory not seen since prior to the 2008 financial crisis.
NYSE:IYF February 20, 2019 4:09pm

ETFs To Buy On Market Dips (IYF)

From BlackRock: Here are five themes to monitor as market volatility picks up, courtesy of BlackRock's Christopher Dhanraj.
NYSE:IYF February 16, 2018 6:07am

BlackRock: Outlook For U.S. Banks Greatly Improved (IYF)

bank front photo
From BlackRock: U.S. bank stocks have lagged both the broader market and their European peers so far this year, but we see a brighter outlook for the group ahead.
NYSE:IYF September 26, 2017 8:41am

ProShares Adds New 3x Leveraged Financials ETFs (FINU, FINZ, IYF, FAS, FAZ)

Michael Johnston: ProShares added a pair of products designed for investors looking to bet on the short term performance of the often volatile financial sector today.
NYSE:FAS July 17, 2012 10:54pm

Preferred Stock ETF Investing: A Complete Guide For Investors (CNPF, IPFF, PFF, PGF, PGX, PSK, VFH, IYF)

Eric Dutram: The world thrives on innovation. With the growth and advent of technology, each day marks new developments and creates something useful for mankind. Talking about innovation and

NYSE:CNPF April 29, 2012 12:48pm

UltraShort ETF Losses Go to ‘Money Heaven’

ultrashort1We like to think of trading as a zero-sum game -- the money you lose is money someone else has made. But that is not always the case. Sometimes the money you lose simply goes away to "money heaven." Never has that concept been truer than when looking at the levered ultra-short ETFs. Periodically, I check in on these to see how they are "performing." Typically, what I will do is take the vanilla ETF on an index and compare it with the 2x short sided ETF on the same index and figure out how much the levered short ETF has outperformed or underperformed. I started this exercise back in November, when I first noticed the tremendous volatility of these levered funds. I keep a spreadsheet, use the adjusted prices to account for dividends and compare the actual performance with the implied performance over various periods of time. Take a look at the data for the U.S. Financial Sector ETFs, the unlevered iShares Dow Jones Financial Sector and the 2x short UltraShort Financials ProShares:
 
 
3-Apr
From 3/26
From 3/6
From 2/23
From 12/31
From 11/20
IYF
36
5.0%
50.8%
30.2%
-19.7% 8.0%
  36.12nav          
 
SKF 80.95 -13.1% -67.6% -59.9% -21.4% -69.2%
  80.38nav          
  implied -10.0% -101.6% -60.4% 39.4% -16.1%
  over/(under) -3.1% 34.0% 0.5% -60.8% -53.1%
 
 The table reflects Friday's close and then looks at return from various dates. Of those dates, we have the autumn closing low for financials on Nov. 20, and we also have this spring closing low on March 6. We also have year-end, which is close to the high for the IYF over the time period (the actual high was Dec. 8). So since the autumn low close on Nov. 20, the IYF is up 8.0% through Friday night. This implies a 2x short return of -16.1%. Yet the SKF is down 69.2% over that period, reflecting an underperformance of 53.1% vs. if one had simply shorted the IYF with two times leverage. Given that the IYF closed below its NAV and the SKF closed above its NAV, this return discrepancy is not caused by NAV differentials (and for what it is worth, on Nov. 20 the SKF closed about 6 points below NAV). So where did the money go? The answer is in the title of this article. Full Story: http://finance.yahoo.com/news/UltraShort-ETF-Losses-Go-to-tsmf-14891308.html
NYSE:SKF April 11, 2009 1:33pm

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