0HD0.L - Ally Financial Inc.

LSE - LSE Delayed price. Currency in USD
15.00
-12.10 (-44.65%)
At close: 2:30PM BST
Stock chart is not supported by your current browser
Previous close27.10
Open15.00
Bid0.00 x 0
Ask0.00 x 0
Day's range15.00 - 15.00
52-week range15.00 - 15.00
Volume23
Avg. volumeN/A
Market cap6.061B
Beta (5Y monthly)1.64
PE ratio (TTM)3.46
EPS (TTM)N/A
Earnings dateN/A
Forward dividend & yieldN/A (N/A)
Ex-dividend dateN/A
1y target estN/A
  • Why Ally Financial Inc. (NYSE:ALLY) Should Be In Your Dividend Portfolio
    Simply Wall St.

    Why Ally Financial Inc. (NYSE:ALLY) Should Be In Your Dividend Portfolio

    Could Ally Financial Inc. (NYSE:ALLY) be an attractive dividend share to own for the long haul? Investors are often...

  • Bloomberg

    Which Bills Will You Stop Paying First?

    (Bloomberg Opinion) -- What’s more important: a roof over your head or a car in your driveway? With unemployment rising as the coronavirus shuts down parts of the U.S. economy, the decision made by borrowers as their payments come due will determine how securities backed by auto loans and leases perform.Families will start to struggle as Covid-19 deepens its grip and job losses rise. Of the $14 trillion of consumer debt, mortgages account for $9 trillion and cars $1.3 trillion; however, more Americans have auto loans. When social distancing becomes the norm, cars seem more likely to fall down the priority list behind payments for homes, Netflix bills, phones and credit cards. With lockdowns spreading, many people aren’t going anywhere right now. That means the default risk is rising. Rating agencies are reassessing portfolios of loans and leases linked to asset-backed securities, or ABS, using loss levels from the 2008 financial crisis to calculate risk.When these car-related debts start going bad, the impact on the bonds they back is severe. The spread of auto ABS over Treasuries widened sharply in recent weeks, more so than on card-backed debt. The current dislocations in credit markets show that while auto-loan defaults may not be the center of a financial crisis like mortgage-backed securities, they could well set off wider panic as consumer confidence crumbles, household balance sheets deteriorate and big issuers – car companies – struggle.This market has grown rapidly since the last financial crisis. Already this year, almost $30 billion of auto asset-backed bonds have been issued in the U.S., following $118 billion in 2019. As of the third quarter last year, $250 billion was outstanding. At year-end, annualized loss rates on subprime auto ABS were around 9%, close to financial-crisis levels, while average interest rates have been even higher at 19%, according to Goldman Sachs Group Inc.Two factors will determine how these bonds perform: unemployment and the value of used cars, because cash flows come directly from borrowers. In the aftermath of a natural disaster, used-car prices rise because property has been damaged or destroyed. In this crisis, they’re likely to fall due to strain on consumer wallets. That reduces the worth of the collateral and lowers the residual value of leases that back some of these securities. Cars are, after all, a depreciating asset.What does this mean for the securitized bonds? Lenders and originators package pools of loans and leases in a special-purpose vehicle that then issues debt to investors. The interest and principal payments are structured into classes. Broadly, the more senior tiers have first claim on all cash flows and assets, while the junior take the first hit on losses but have higher yields. The lowest tranche, also known as the equity or first-loss pieces, is typically held by the issuer: auto companies’ financing arms and other lenders.  When loans default and the asset pool can’t make up for the payments due to investors, the holders of the lower tranches absorb the loss.It will be yet another blow for the finance companies of already-struggling carmakers that issue ABS to finance leases and sales. They’ll take the first hit through the equity. Funding costs will surge and in turn squeeze sales, reminiscent of 2008.(3)As sales showed signs of reaching a plateau last year, auto giants, dealers and finance companies were pushing excessive financing with looser underwriting standards and conditions, such as longer terms and incentives. The weighted average credit score for non-prime loan pool borrowers was 590 last year, lower than 597 in 2008.Household balance sheets were strong overall going into this crisis, but varied greatly across income levels. The bottom 20% of American households are far more leveraged — more than 25% — than the higher income brackets on a debt-to-assets basis. Around a third of auto ABS are typically made up of subprime loans, where the ability to pay drops off sharply and suddenly.That doesn’t bode well. Companies like Ally Financial Inc. have already offered relief packages for consumers and dealers. Payments can be deferred for six months without late fees. New customers will be allowed to defer for three months. The Federal Reserve has brought back a financial crisis-era lending facility that’s meant to support the asset-backed securities market, where auto loans and leases are among the eligible collateral.The troubles will go further: There are other auto sector-related ABS, like those backed by rental cars and dealer-floor financing plans that are even more directly dependent on automakers’ health.Sure, structures have changed since 2008 to help lower the risk for investors on these bonds. But the underlying issues remain the same: consumers’ buying and borrowing behavior.Investors are busy thinking about mortgage-backed securities, given their large size and potentially deeper and more immediate impact on the financial system. But it’s important to consider recent consumer trends: Delinquencies as a portion of outstanding loans have been on the way down for mortgages. They’re rising for autos, especially among subprime borrowers, as are past-due loans. America has always been a nation of drivers and the appeal of cars has a way of pushing consumers to stretch their budgets in a way houses don’t. But the stay-in-place strategies to fight this pandemic may change that calculus in a way investors aren’t prepared for: Driving behavior could change.(1) Unable to secure affordable financing, the financing arms severely curtailed lending and leasing activity. This caused vehicle sales volumes to plummet and hastened the Chapter 11 bankruptcy filings of Chrysler on April 30, 2009, and General Motors Inc. on June 1, 2009, according to S&P Global Ratings.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Anjani Trivedi is a Bloomberg Opinion columnist covering industrial companies in Asia. She previously worked for the Wall Street Journal. For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Ally Financial Inc. Just Reported Earnings, And Analysts Cut Their Target Price
    Simply Wall St.

    Ally Financial Inc. Just Reported Earnings, And Analysts Cut Their Target Price

    It's been a mediocre week for Ally Financial Inc. (NYSE:ALLY) shareholders, with the stock dropping 11% to US$25.39 in...

  • Is It Smart To Buy Ally Financial Inc. (NYSE:ALLY) Before It Goes Ex-Dividend?
    Simply Wall St.

    Is It Smart To Buy Ally Financial Inc. (NYSE:ALLY) Before It Goes Ex-Dividend?

    Readers hoping to buy Ally Financial Inc. (NYSE:ALLY) for its dividend will need to make their move shortly, as the...

  • Here's Why I Think Ally Financial (NYSE:ALLY) Is An Interesting Stock
    Simply Wall St.

    Here's Why I Think Ally Financial (NYSE:ALLY) Is An Interesting Stock

    It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

  • Savings account rates continue downward, even if the Fed rate isn't
    Yahoo Finance

    Savings account rates continue downward, even if the Fed rate isn't

    Many online savings accounts paid over 2% in June, before the Fed began its rate cuts. Now the Fed is holding steady, but savings accounts could sink lower.

  • Why Ally Financial Inc.'s (NYSE:ALLY) CEO Pay Matters To You
    Simply Wall St.

    Why Ally Financial Inc.'s (NYSE:ALLY) CEO Pay Matters To You

    JB Brown became the CEO of Ally Financial Inc. (NYSE:ALLY) in 2015. First, this article will compare CEO compensation...

  • Need To Know: Ally Financial Inc. (NYSE:ALLY) Insiders Have Been Selling Shares
    Simply Wall St.

    Need To Know: Ally Financial Inc. (NYSE:ALLY) Insiders Have Been Selling Shares

    We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The...

  • Trade war pause, retail sales, bank earnings – What to know in the week ahead
    Yahoo Finance

    Trade war pause, retail sales, bank earnings – What to know in the week ahead

    The coming week’s docket of economic reports and earnings releases comes just following the Trump administration’s announcement of a partial trade deal with China late last week.

  • Ally Financial Is Coasting on Strong Auto Originations
    Motley Fool

    Ally Financial Is Coasting on Strong Auto Originations

    But investors should also take note of the bank's rapidly scaling customer deposit base.

  • Ally Financial (ALLY) Q2 2019 Earnings Call Transcript
    Motley Fool

    Ally Financial (ALLY) Q2 2019 Earnings Call Transcript

    ALLY earnings call for the period ending June 30, 2019.

  • Stock Market News: Jony Ive Leaves Apple; Savings Accounts See Rate Cuts
    Motley Fool

    Stock Market News: Jony Ive Leaves Apple; Savings Accounts See Rate Cuts

    Stocks were modestly higher Friday morning.

  • 3 Top Stocks That Aren't on Wall Street's Radar
    Motley Fool

    3 Top Stocks That Aren't on Wall Street's Radar

    Wall Street, and most investors who follow its lead, is overlooking this online bank, pharmaceutical company, and master limited partnership. Investors who are paying attention could score outsized gains by investing ahead of the crowd.

  • Ally Financial (ALLY) Q1 2019 Earnings Call Transcript
    Motley Fool

    Ally Financial (ALLY) Q1 2019 Earnings Call Transcript

    ALLY earnings call for the period ending March 31, 2019.

  • Associated Press

    Ally Financial: 1Q Earnings Snapshot

    On a per-share basis, the Detroit-based company said it had profit of 92 cents. Earnings, adjusted for non-recurring gains, were 80 cents per share. The results exceeded Wall Street expectations. The average ...

  • ALLY Clears Buy Point
    Investor's Business Daily Video

    ALLY Clears Buy Point

    Ally Financial cleared a 34.33 cup-base buy point. Relative strength line at new high. The auto lender is in a market sweet spot – some financials and auto lenders are breaking out or leading.STOCK MARKET TODAY is sponsored by Interactive Brokers. To open an account, go to ibkr.com/whyib

By using Yahoo, you agree that we and our partners can use cookies for purposes such as customising content and advertising. See our Privacy Policy to learn more