BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Citigroup Upgrades Royal Bank of Scotland, Downgrades Barclays]]>http://www.bloggingstocks.com/2010/09/10/citigroup-upgrades-royal-bank-of-scotland-downgrades-barclays/http://www.bloggingstocks.com/2010/09/10/citigroup-upgrades-royal-bank-of-scotland-downgrades-barclays/http://www.bloggingstocks.com/2010/09/10/citigroup-upgrades-royal-bank-of-scotland-downgrades-barclays/#commentsFiled under: , ,

Citigroup decided to take some action on banks, upgrading Royal Bank of Scotland (RBS) to buy from hold, and cutting Barclays (BCS) to hold from buy. Citigroup cited valuation as the main reason for the RBS upgrade. In the U.K., RBS finished the day nearly 1.3% higher.

The brokerage firm said it downgraded Barclays because in its view "the 'new' theme that the first-half 2010 results highlighted is the effects that economic deleveraging is having on the loan books and revenues of the banks." Citigroup added that "A much higher proportion of revenues are linked to new business levels than are costs. To tackle this earnings threat, banks need a combination of pricing power, margin expansion and a strong cost story." In overseas trade, BCS finished the day more than 1% lower.

Continue reading Citigroup Upgrades Royal Bank of Scotland, Downgrades Barclays

Citigroup Upgrades Royal Bank of Scotland, Downgrades Barclays originally appeared on BloggingStocks on Fri, 10 Sep 2010 10:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>financialfinancial industryinthenewsrbsRoyal Bank of ScotlandU.K. banksupgradesFri, 10 Sep 2010 10:20:00 EST<![CDATA[Hedge fund letter outlines how we got into this mess]]>http://www.bloggingstocks.com/2007/08/18/hedge-fund-letter-outlines-how-we-got-into-this-mess/http://www.bloggingstocks.com/2007/08/18/hedge-fund-letter-outlines-how-we-got-into-this-mess/http://www.bloggingstocks.com/2007/08/18/hedge-fund-letter-outlines-how-we-got-into-this-mess/#commentsFiled under: , , ,

As investors, we are blessed by the willingness of hedge fund operators to write letters to investors that describe the current financial situation. One such letter helps me understand how financial alchemy transformed subprime mortgages into AAA-rated paper eagerly consumed by European and Asian investors eager to recycle the cash generated by high oil prices and trade surpluses with the U.S.

Barron's [subscription required] excerpted this letter from "A (bearish) hedge-fund operator," in a letter to his investors, describes how a senior Wall Street marketing director recounted the genesis of the current situation:

"'Real money' (U.S. insurance companies, pension funds, etc.) accounts had stopped purchasing mezzanine tranches of U.S. subprime debt in late 2003 and [Wall Street] needed a mechanism that could enable them to 'mark up' these loans, package them opaquely, and EXPORT THE NEWLY PACKAGED RISK TO UNWITTING BUYERS IN ASIA AND CENTRAL EUROPE!!

Continue reading Hedge fund letter outlines how we got into this mess

Hedge fund letter outlines how we got into this mess originally appeared on BloggingStocks on Sat, 18 Aug 2007 11:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AAACDO managersCDOsChinese banksChinese governmentfinancial illusionsFrench banksGerman bankshedge fund operatorsKorean banksmezzanine tranchespetrodollar recyclerssubprimesubprime debtsubprime mortgagesTaiwanese bankstrade surplusU.K. banksSat, 18 Aug 2007 11:40:00 EST