Author Topic: BAC-WT - Bank of America Warrants  (Read 2206809 times)

sleepydragon

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Re: BAC-WT - Bank of America Warrants
« Reply #7430 on: June 22, 2019, 06:03:14 AM »
I recently got an auto loan (new car) from BAC at 2.79%.
How can they make money with this loan?!
(Fortunately, two days after I got my loan I saw the rate increased to above 3%)
Anyway, they must be gaining market shares in auto loans


coc

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Re: BAC-WT - Bank of America Warrants
« Reply #7431 on: June 23, 2019, 06:01:33 AM »
I recently got an auto loan (new car) from BAC at 2.79%.
How can they make money with this loan?!
(Fortunately, two days after I got my loan I saw the rate increased to above 3%)
Anyway, they must be gaining market shares in auto loans

Anecdotally, KMX noted yesterday that their auto loan partners have gotten more aggressive recently.

John Hjorth

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Re: BAC-WT - Bank of America Warrants
« Reply #7432 on: July 15, 2019, 04:25:24 AM »
I'm posting here, because among the Big US Banks, BAC on overall level seems to be the "discussion darling" among the Big 4 US Banks in general here on CoBF [perhaps there has been more traction in the WFC topic lately, but I consider that more related to specifics about WFC itself].

- - - o 0 o - - -

We're up for three - at least to me - very interesting days, the three days including today, where C within an hour from now will report for 2019Q2. To me, it'll be a releaf "just" to get some "real" information from the mouths of the horses out of "all the noise" , that just seems to be going on at a steady increasing intensity [perhaps, that's just me feeling so].

My telescope is tuned in, I'll swing it a few times within the next few days, to receive hopefully clear signals - like pearls on a string - from a chaotic black sky at night. Then I'll read the signals, then crawl back in my cave, to try to do my best to avoid all the noise.
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

Cigarbutt

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Re: BAC-WT - Bank of America Warrants
« Reply #7433 on: July 16, 2019, 06:16:05 AM »
I'm posting here, because among the Big US Banks, BAC on overall level seems to be the "discussion darling" among the Big 4 US Banks in general here on CoBF [perhaps there has been more traction in the WFC topic lately, but I consider that more related to specifics about WFC itself].

- - - o 0 o - - -

We're up for three - at least to me - very interesting days, the three days including today, where C within an hour from now will report for 2019Q2. To me, it'll be a releaf "just" to get some "real" information from the mouths of the horses out of "all the noise" , that just seems to be going on at a steady increasing intensity [perhaps, that's just me feeling so].

My telescope is tuned in, I'll swing it a few times within the next few days, to receive hopefully clear signals - like pearls on a string - from a chaotic black sky at night. Then I'll read the signals, then crawl back in my cave, to try to do my best to avoid all the noise.
Sidenote about participation here:
This site provides filtered information mostly but important decisions should rely on unfiltered data and independent thinking is useful to distill the key inputs while doing away with the noise. From a conceptual perspective, filtering the noise will tend to help you come up with a more precise conclusion at a risk though to be more precisely wrong so the raw data and the choice of the filters is important. This is basically the basis for the bias-variance trade-off in decision making. A problem is that a lot of the stuff is simply unknowable with any degree of certainty.

---)Back to the Bank of America
Since 2009, I haven't been able (still) to invest in US banks because of what I feel to be embedded systemic fragility. The rest is optional reading and maybe your time would be better spent watering your flowers and Mr. Buffett clearly doesn't share those concerns, so…
But speaking of filters, here's a study from the Fed in San Francisco whose authors defined filters in order to asses the fragility of the financial system and the potential impact on banks. It seems to me they do a good job at giving access to raw data and how they define their assumptions but the conclusions are yours.
https://www.frbsf.org/economic-research/files/wp2019-06.pdf


CorpRaider

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Re: BAC-WT - Bank of America Warrants
« Reply #7435 on: August 07, 2019, 03:47:17 PM »

Viking

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Re: BAC-WT - Bank of America Warrants
« Reply #7436 on: August 07, 2019, 07:49:20 PM »
Yes, the big banks are leading the charge lower. I wonder how the fall in long rates is going to impact earnings in future years (should long rates stay low or go even lower).

Slowing economy and risk of recession look to be getting priced in to shares.

The silver lining is the amount of excess capital they have on their balance sheet and the large number of shares they will be purchasing over the next 12 months.

The big US banks have also been very good at morphing as required to continue to drive solid earnings and my guess is this will continue as we see how the economy unfolds.

RuleNumberOne

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Re: BAC-WT - Bank of America Warrants
« Reply #7437 on: August 07, 2019, 08:07:00 PM »
There are plenty of loss-making 'growth' and momentum stocks that have been hurt very little. We wouldn't see that if a recession was being priced in.

IMO, this is the same old trend-following divergence between 'growth' and 'value.' Most trading volume is due to 'algos'. 'Algorithms' is a glorified term for trend-following, they are really quite stupid.

There will be a rush for yield eventually when the capital gains in bonds are tapped out (as pointed out by Ray Dalio.) US banks look set to benefit from such a rush for yield.

Yes, the big banks are leading the charge lower.
Slowing economy and risk of recession look to be getting priced in to shares.
« Last Edit: August 07, 2019, 08:16:01 PM by RuleNumberOne »

TwoCitiesCapital

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Re: BAC-WT - Bank of America Warrants
« Reply #7438 on: August 08, 2019, 07:16:33 AM »
This entire time I've been expecting the better run European banks to catch up to the US ones.

But at this point, seems like a non-zero chance that US Bank catch down to European ones

RuleNumberOne

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Re: BAC-WT - Bank of America Warrants
« Reply #7439 on: August 08, 2019, 10:02:55 AM »
European banks may be blaming negative rates, but they never recovered from 2007.

The stock chart for banks like DB and Lloyds show a downward trend from 2007. Barrons recently listed the 6 biggest European banks and they had a combined market cap less than BAC.

Eurozone regulators have covered up the big holes in their banks and investors don't trust them. Like DB's derivatives. Italian and French banks holding several hundreds of billions of Italian debt,....
« Last Edit: August 08, 2019, 10:11:38 AM by RuleNumberOne »