March 8, 2016
By Lucinda Shen
Citigroup’s C 0.19% revenue (click here) from trading equity and fixed-income is expected to fall 15% year-over-year in the first quarter of 2016, the company’s CFO John Gerspach said. Investment banking revenue is also expected to slip 25%, Bloomberg first reported.
Shares fell 3% to about $41.41 a share at 2:40 p.m.
“It has been a tough quarter,” Gerspach said at an investor conference Tuesday, as reported by Reuters.
All the banks have to offer are excuses. They don't offer insightful leadership to AVOID THE EXCUSES!!!!!!!
This is why the banks are such issues and the funding they provide to political campaigns. The banks are hungry for liquid capital. Evidently, the slowed liquidity doesn't provide enough adrenaline in a given day. What are they going to do, buy the world?
March 9, 2016
By Alastair March and Sridhar Natarajan
Citigroup Inc. (click here) is the latest Wall Street bank to try to make money off the declining liquidity in the debt markets by selling a type of derivative increasingly used to wager on corporate bonds.
The U.S. lender has expanded its offerings of so-called total-return swaps to cover investment-grade debt over the past few weeks, according to two people familiar with the matter, who asked not to be identified because they’re not authorized to speak about it. In December, Citigroup started selling TRS linked to Markit Group Ltd.’s high-yield bond index.
“TRS is a natural extension of the derivatives products suite we offer to our clients,” Citigroup spokeswoman Danielle Romero-Apsilos said.
The derivatives appeal to investors because they’re designed to make it easier to bet on debt as trading in the credit markets has become increasingly time consuming and expensive with liquidity drying up. Dealer inventories are declining as regulations introduced to reduce risk-taking deter banks from holding the large positions needed to effectively make markets....
There needs to be a "bank fitness test" again and soon. The BANKS ARE OVEREXTENDED if they are hungry for liquidity. Liquidity provides the ability to conduct daily business. If the CEOs are burning through liquidity faster than the Fed can print it, then the banks are mismanaged.
By Lucinda Shen
Citigroup’s C 0.19% revenue (click here) from trading equity and fixed-income is expected to fall 15% year-over-year in the first quarter of 2016, the company’s CFO John Gerspach said. Investment banking revenue is also expected to slip 25%, Bloomberg first reported.
Shares fell 3% to about $41.41 a share at 2:40 p.m.
“It has been a tough quarter,” Gerspach said at an investor conference Tuesday, as reported by Reuters.
All the banks have to offer are excuses. They don't offer insightful leadership to AVOID THE EXCUSES!!!!!!!
This is why the banks are such issues and the funding they provide to political campaigns. The banks are hungry for liquid capital. Evidently, the slowed liquidity doesn't provide enough adrenaline in a given day. What are they going to do, buy the world?
March 9, 2016
By Alastair March and Sridhar Natarajan
Citigroup Inc. (click here) is the latest Wall Street bank to try to make money off the declining liquidity in the debt markets by selling a type of derivative increasingly used to wager on corporate bonds.
The U.S. lender has expanded its offerings of so-called total-return swaps to cover investment-grade debt over the past few weeks, according to two people familiar with the matter, who asked not to be identified because they’re not authorized to speak about it. In December, Citigroup started selling TRS linked to Markit Group Ltd.’s high-yield bond index.
“TRS is a natural extension of the derivatives products suite we offer to our clients,” Citigroup spokeswoman Danielle Romero-Apsilos said.
The derivatives appeal to investors because they’re designed to make it easier to bet on debt as trading in the credit markets has become increasingly time consuming and expensive with liquidity drying up. Dealer inventories are declining as regulations introduced to reduce risk-taking deter banks from holding the large positions needed to effectively make markets....
There needs to be a "bank fitness test" again and soon. The BANKS ARE OVEREXTENDED if they are hungry for liquidity. Liquidity provides the ability to conduct daily business. If the CEOs are burning through liquidity faster than the Fed can print it, then the banks are mismanaged.
