|Bid||34.50 x 1200|
|Ask||34.60 x 800|
|Day's range||34.30 - 35.06|
|52-week range||26.40 - 51.60|
|Beta (5Y monthly)||1.10|
|PE ratio (TTM)||7.45|
|Earnings date||15 Jul 2020|
|Forward dividend & yield||1.24 (3.54%)|
|Ex-dividend date||27 Apr 2020|
|1y target est||42.87|
The Bank of New York Mellon Corporation (NYSE:BK) investors will be delighted, with the company turning in some strong...
AM Best has affirmed the Financial Strength Ratings of A (Excellent) and the Long-Term Issuer Credit Ratings of "a+" of BNY Trade Insurance, Ltd. (BNY Trade) (Hamilton, Bermuda) and The Hamilton Insurance Corp. (Hamilton) (Melville, NY). The outlook of these Credit Ratings (ratings) remains stable.
Warren Buffett, chairman and CEO of Berkshire Hathaway, has been a consistent voice of optimism on the U.S. economy and American innovation.
(Bloomberg) -- Chinese e-commerce giant JD.com Inc. has filed confidentially for a second listing in Hong Kong, according to people with knowledge of the matter, joining rival Alibaba in tapping the city’s stock market for funds.The offering could raise at least $2 billion, the people said, asking not to be identified because the information is private. The Beijing-based company, which currently trades on Nasdaq, has a market value of $64 billion.The deal comes after Alibaba Group Holding Ltd. raised $13 billion in a Hong Kong share sale last year. That much larger deal was hailed as a homecoming for Chinese companies and a win for Hong Kong Exchanges & Clearing Ltd., which lost these deals to its U.S. counterparts a decade ago because it didn’t allow dual-class share voting at the time. The bourse, which relaxed the rule in 2018, was up as much as 2.4% Wednesday.JD’s listing could come as early as the second half of the year, according to one of the people. Deliberations are ongoing and the size of the offering could still change, the people said. A representative for JD.com didn’t immediately respond to requests for comment.Read more: JD’s Retail Chief Takes Lead as Billionaire Founder RecedesWhat Bloomberg Intelligence SaysJD.com’s potential Hong Kong secondary listing may help to narrow its valuation gap with global e-commerce peers such as Amazon and Alibaba. Alibaba’s market value increased by more than 20% within two months of its Hong Kong listing in November, as its offering attracted domestic investors who are also its customers.\- Vey-Sern Ling and Tiffany Tam, analystsClick here for the research.JD’s decision comes after the Chinese online retailer’s forecast for at least 10% revenue growth in the March quarter suggested its business was proving more resilient to the epidemic than anticipated.It may fare better than its peers because it employs a direct-to-consumer sales and in-house logistics model that may prove more resilient to short-term disruptions than platforms that connect merchants with buyers, some analysts say. Away from the outbreak, JD continues to win more consumers from smaller Chinese cities and towns, while demand for the electronics it depends on should rebound after the outbreak subsides.The company’s shares slid 4.4% Tuesday, but have risen more than 23% this year while the S&P/BNY Mellon China ADR Index, which tracks U.S.-listed Chinese companies, is down 5.2% during the same period. IFR Asia reported earlier Tuesday that the company had filed for a Hong Kong listing confidentially.(Updates with analyst’s comment in the fifth paragraph. A previous version of the story was corrected to reflect HKEx’s full name in the third paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- At one point last week, traders who bought high-yield energy bonds during the darkest days of the market’s sell-off had to be nothing short of giddy at their good fortune. In just three weeks, from March 24 to April 14, an index of junk debt from companies in oil field services, midstream and refining had surged more than 30% — a staggering rally that if stretched out over a year would translate to a 10,500% windfall.Markets rarely move in a straight line, of course, and indeed the gains flatlined toward the end of the week. Still, those investors who snapped up speculative-grade energy bonds at 24% yields were sitting on a tidy profit in the short term and amassed a seemingly large buffer for losses in the longer run. As of Friday, the average yield on the Bloomberg Barclays High Yield Energy Total Return Index tumbled almost 900 basis points from that peak to about 15%.Those yield hunters might want to book their gains and run, judging by the latest swings in the oil markets.West Texas Intermediate crude oil fell more than 40% on Monday to less than $11 a barrel, the biggest one-day drop since the contract began trading in 1983 and the lowest level since 1986. The WTI contract for May expires Tuesday and is more than $10 a barrel cheaper than the one for June, wider than the record $8.49 difference set in December 2008. A a fast-growing glut of oil is causing traders to shift their positions rapidly to June so they don’t have to take deliveries of cargoes given the lack of space to store them. As Bloomberg News’s Alex Longley put it, there are signs of weakness everywhere:Buyers in Texas are offering as little as $2 a barrel for some oil streams, raising the possibility that producers may soon have to pay to have crude taken off their hands. China reported its first economic contraction in decades on Friday, an indication of what’s to come in other major economies that have yet to emerge from coronavirus-driven lockdowns.“There is no limit to the downside to prices when inventories and pipelines are full,” commodities hedge fund manager Pierre Andurand said on Twitter. “Negative prices are possible.”Already, those who tried to call the oil-price bottom through energy exchange-traded funds are getting burned. As Bloomberg’s Katherine Greifeld noted, the United States Oil Fund LP (ticker: USO) plunged more than 10% on Monday, burning investors who added a whopping $1.6 billion into the $4.3 billion fund last week — the biggest weekly inflow ever.Guess what other asset class just experienced record demand? That would be U.S. junk-bond funds, which reported an unprecedented $7.66 billion inflow for the week ended April 15, according to Refinitiv Lipper data. It broke the previous high-water mark of $7.09 billion set in the period through April 1.Now, the sudden revival in high-yield debt goes beyond just the energy sector. Most prominently, the Federal Reserve announced on April 9 that its corporate-bond facilities would extend purchases to “fallen angels” that recently lost their investment grades, alleviating some fears that the speculative-grade ranks would be inundated with supply. That helped thaw the primary market for junk-rated companies to raise cash and avert an imminent reckoning.Still, there’s evidence that junk energy bonds, which faced the steepest sell-off and therefore offered the highest yields, benefited disproportionately from the overall bounce-back in risky debt. Here’s a chart from John Velis, an FX and macro strategist at BNY Mellon:The blue diamonds show the depth of losses from Feb. 24 through March 16 and the gray bars show the total return since that date. Clearly, high-yield energy bonds were pummeled more than the rest of the market and remain the worst-performing segment, but they’ve bounced back significantly from their lows, too. “We wonder if the HY energy sector is too sanguine about stability and subsequent recovery prospects in high-yield energy bonds,” Velis wrote in a note Monday.He’s hardly alone. Morgan Stanley strategists Brian Gibbons and Mackenzie Schneider wrote Monday that they “continue to see low asset values and recovery rates across the sector at the current commodity strip.” The most optimistic point was that “companies with strong liquidity and longer maturity runways have a greater chance of making it through the downturn to a higher price environment, although pricing that optionality is challenging.” To their point, double-B rated energy bonds gained the most last week, while those rated triple-C dipped even lower to roughly 20 cents on the dollar.Bank of America Corp. strategists went even further, arguing that high-yield bond spreads as a whole don’t fully reflect default risk. They expect a 21% cumulative junk-debt default rate over the full cycle, from 11% for double-Bs to 50% in triple-Cs, and a 9% rate over the next 12 months. By their calculation, that suggests yields should be 950 basis points more than Treasuries to compensate for the risk, rather than the current 705-basis-point spread. Similarly, the latest lurch lower in oil prices suggests the peak yield of 24% for high-yield energy bonds might have been closer to the appropriate level after all. The cost to insure against defaults from Diamond Offshore Drilling, Transocean and Chesapeake Energy over the next five years surged on Monday by more than just about all other companies in Markit’s high-yield credit-default swap index. That’ll soon make its way into bond pricing.It’s worth remembering that sometimes bonds look cheap for a reason. As my Bloomberg Opinion colleague Liam Denning put it in his assessment about the future of the energy industry, “Covid-19 is like a fever dream of all the pressures that were bearing down on oil already.” Fortunately for traders who went bottom-fishing for speculative-grade energy bonds in the eye of a market storm, they still have time to wake up to reality before their blockbuster returns are swiftly washed away.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.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.
A week ago, The Bank of New York Mellon Corporation (NYSE:BK) came out with a strong set of quarterly numbers that...
BNY Mellon (BK) witnesses higher revenues in the first quarter of 2020. However, marginally higher expenses and a significant rise in provisions hurt results to some extent.
Investing.com - Bank of NY Mellon (NYSE:BK) reported on Thursday first quarter earnings that beat analysts' forecasts and revenue that topped expectations.
Lower asset balances are expected to have hampered BNY Mellon's (BK) performance fee in first-quarter 2020. Lower interest rates are likely to have hurt net interest revenues.
Cost-control efforts are expected to support BNY Mellon's (BK) bottom line to an extent. However, pressure on margins due to lower rates remains a woe.
Is The Bank of New York Mellon Corporation (NYSE:BK) a good dividend stock? How can we tell? Dividend paying companies...
Regulators are encouraging banks to tap into capital and liquidity to lend into an economy affected by the coronavirus but further regulatory easing could be coming.
(Bloomberg Opinion) -- There’s really only one sure thing in markets, and that is the longer a rout in stocks goes on, the more esoteric the analysis put out by Wall Street to explain the moves and guess when the carnage may end. Examples range from the relationship between bond yields and dividends to something euphemistically called “technical analysis” that attempts to divine future prices from squiggly lines on a chart.None of it seems to work, because nothing can accurately predict human fear and emotion. As economist John Maynard Keynes said: “The market can remain irrational much longer than I can remain solvent.” So instead of trying to read too much into the S&P 500 Index’s 4.94% rebound on Tuesday from its gut-wrenching 7.60% drop the day before, it’s best to understand where markets are valued through the simplest of math. As of the end of last week, the benchmark traded at about 18.3 times earnings based on a level of 2,972. (It ended Tuesday at 2,882.23.) That implies corporate earnings of $153 per share for this year, well below the $172 estimated by Wall Street, according to BNY Mellon strategist John Velis. Now, nobody believes those forecasts — made in calmer times — will be achieved, but flat earnings growth is probably a baseline assumption at this point. Such a scenario translates into a price-to-earnings ratio of 17.5 times and a level of just under 2,900 for the S&P 500, Velis wrote in a recent research note. For the pessimists who might expect earnings to plunge 25% and P/E ratios to collapse to an apocalyptic 12.5 times, the S&P 500 would fall just below 1,450 for a decline of about 50%. So, the market could get better or it could get worse — that’s just the way it is. “Even a smallish 15% hit to earnings growth, combined with typical equity de-rating, paints some concerning market scenarios,” Velis wrote. “A slightly worse corporate profits scenario (say, a 25% earnings decline) makes dire reading, indeed.” This is not to cause panic, but rather to help provide an understanding of stock valuations based on varying assumptions, and see how that may be playing into the movements we’re seeing now.SAFETY HAS ITS LIMITSPerhaps the most encouraging news for the stock market on Tuesday came out of the bond market. One could make a strong case that the collapse in U.S. Treasury yields in recent weeks has led equities lower, rather than the other way around. Bonds, more so than stocks, are pricing in a dire economic outlook, with a severe recession a strong possibility. But at the Treasury Department’s monthly auction of three-year notes, traders bid for only 2.2 times the $38 billion of securities offered. That’s the lowest bid-to-cover ratio since December 2018 and down from 2.56 at last month’s sale. What this shows is that bond traders, who have a reputation for having a better handle on the economic outlook than stock traders, aren’t panic buying safe government bonds at any cost. In that sense, the message may be that the worst is over and markets may be returning to more orderly daily moves. The auctions continue Wednesday with the sale of $24 billion in 10-year notes and the sale Thursday of $16 billion in 30-year bonds.OIL WAR TURNS INTO CURRENCY WAROil prices around the world plunged on Monday by the most in more than a decade following the collapse in talks between Saudi Arabia and Russia on bolstering crude production. Saudi Arabia wanted to support prices by limiting production, while Russia wanted to pump as much oil as possible; when Russia refused to budge, Saudi Arabia launched a price war by offering discounts to customers and promising to open its spigots. On Tuesday, Russia made clear it has no intention of backing down from its stance, bringing forward foreign currency sales and raising cash to brace for further turmoil in oil markets. The result was a 4.57% tumble in the ruble, the most among the more than 30 major currencies tracked by Bloomberg. The sales would normally have started next month, according to Bloomberg News’s Natasha Doff and Áine Quinn, but Russia’s Finance Ministry said it would sell foreign currency as long as oil prices stay below $42.40 per barrel. Russia is such a large component in emerging markets that a prolonged effort to weaken its currency may put pressure on other emerging market economies to do the same in order to stay competitive. The downside is that mass devaluation of emerging-market currencies would only exacerbate the pain their economies are experiencing.TRUMP’S PYRRHIC OIL VICTORYIt was almost one year ago that President Donald Trump tweeted that it was “very important that OPEC increase the flow of Oil. World Markets are fragile, price of Oil getting too high. Thank you!” Naturally, he followed that up Monday by tweeting: “Good for the consumer, gasoline prices are coming down.” Indeed, regular-grade gasoline prices as measured by the Automobile Association of America have fallen to $2.365 a gallon from this year’s high of $2.600 in early January. Deutsche Bank strategist Torsten Slok wrote in a note to clients Tuesday that it could soon drop to $2 a gallon. There’s no doubt that the drop in gasoline prices could be a potential boon for the U.S. consumer. Citigroup’s economists estimated in a research note that it may add as much as $125 billion in extra disposable income to consumer wallets. But these are hardly normal times, with the spreading coronavirus likely to keep Americans close to home instead of going out and driving their cars. The Citigroup economists seem to acknowledge as much, noting that “discretionary consumer spending is typically the key beneficiary when retail gas prices decline, so a more cautious consumer in the current environment is likely to pare down the upside effect from lower oil prices in the near-term.”ITALY MATTERSThe number of confirmed coronavirus cases in Italy officially surpassed the 10,000 mark on Tuesday, with Prime Minister Giuseppe Conte calling on the European Central Bank to help shore up what was already a flagging national economy. Conti evoked the “whatever it takes” language that came to symbolize the ECB key role in stabilizing the euro area in 2012, Bloomberg News reported, citing a European official. When it comes to Italy, European officials shouldn’t view aid as a handout, but rather as a necessity because the stakes are too high. Italy has about $2.3 trillion of government bonds outstanding, making it the world’s fifth-biggest debtor behind the U.S., China, Japan and France. A crisis in confidence here could quickly escalate into another global crisis. The nation’s bonds offer the euro zone’s highest yields outside of Greece to compensate investors for the strong degree of uncertainty and large debt load. Italy’s 10-year notes yielded about 2.27 percentage points more than similar-maturity German bunds on Monday, the most since August and rapidly expanding from 1.29 percentage points a month ago.TEA LEAVES The collapse in bond yields has resulted in a big drop in mortgage rates. Freddie Mac said last week that average rates on a 30-year home loan dropped to an all-time low of 3.29%. They are likely to be even lower when Freddie Mac provides an update Thursday. The upshot is that scores of homeowners are able to refinance at lower rates, providing monthly savings that dwarf what they would enjoy from lower gasoline prices. Markets will get an update on the latest refinancing activity Wednesday when the Mortgage Bankers Association updates its weekly refinancing index. That gauge rose last week to the highest since 2013, and there are many reports of lenders quickly shifting workers to their mortgage departments to handle the flood of refinancing requests. The downside is that the lower rates don’t seem to be helping purchases of homes. The Mortgage Bankers Association’s purchasing index actually fell last week and is in line with its average over the past 12 months.DON’T MISS The U.S. Economy Is Now in Uncharted Waters: Tyler Cowen The Best Coronavirus Response? QE and Infrastructure: Noah Smith Fed Can't Let Bond Yields Fall to Zero: Danielle DiMartino Booth Bond Buyers Won't Like the Coronavirus Stimulus: Conor Sen The Last Place You'd Think to Hide in a Meltdown: Shuli RenTo contact the author of this story: Robert Burgess at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Robert Burgess is an editor for Bloomberg Opinion. He is the former global executive editor in charge of financial markets for Bloomberg News. As managing editor, he led the company’s news coverage of credit markets during the global financial crisis.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.
Fed Vice Chairman Randal Quarles said he is "optimistic" about the economic outlook despite Coronavirus risks. He also floated possible bank changes to bank rules.
The Bank of New York Mellon has been on a bit of a cold streak lately, but there might be light at the end of the tunnel for this overlooked stock.
The Bank of New York Mellon Corporation (NYSE:BK) shares fell 8.6% to US$46.18 in the week since its latest full-year...