19 Burst results for "Equity Securities"

Are Banks Safe?

Money For the Rest of Us

06:18 min | 6 months ago

Are Banks Safe?

"Month they had several plus members. Share an article with me. That was published in the Atlantic titled Becoming Bank Collapse. The subtitle was the US. Banking System could be on the cusp of calamity this time. We might not be able to save it. Article was written by Frank Partnoy. He's a law professor at UC Berkeley. That's a pretty ominous title. We WanNa look at the article as well as the state of US banks and banks around the world. Should we be worried given the pandemic is the banking system poised to collapse. I was especially interested in the article, because it came out right after I had increased my allocation to stocks and added a preferred stock et after the money for the rest of US plus model portfolios. The particular preferred stock after us by shares has about twenty six percent allocated to banks and banks are on the cusp of this calamity that does not bode well for preferred stocks. In the article, Partnoy is particularly worried about banks exposures to an esoteric security. A collateralized loan, obligation or see Elo. We Discussed Sea Ellos back in episode two six in May twenty eighteen. collateralized loan obligations are asset backed securities issued by special purpose vehicles or s peeves. The S P V purchases leveraged loans which are non investment grade bank loans that have been syndicated. A, bank will make a loan to a Non Investment Grade Company, a higher risk company and then sell that loan into the marketplace. Many of those purchasers are Clo's is over a trillion dollars of leveraged loans outstanding. and. Most are held as part of these collateralized loan obligation structures. The way it works. Is that s? Cells, debt and equity securities that comprise to see yellow. Those securities are backed or collateralized by the leveraged loans. The CEELO has multiple layers tranches that are sold separately. The debt layers are rated by credit quality, so the senior layer is triple A.. There are lower rated debt layers known as mezzanine layers, and then there's an equity layer which is unrated. The payments on the underlying leverage loans, those payments are pooled together and flow in order. The first payments go to the senior AAA layer then to the lower rated layers, and then finally to the equity layer. That is known as they waterfall. The debt tranches are over collateralized debt ACL Oh might have issued five hundred million dollars in debt securities as part of the L O that are backed by six hundred and twenty five Million Dollars Worth of leveraged loans with the Additional One, hundred, twenty, five million in loans funded from selling the equity trunch. Each Cielo about one hundred and fifty to two hundred and twenty-five loans. And because the leverage loans, themselves are floating rate notes. Their interest rates will fluctuate as short term. Interest rates change the debt tranches within a cll are also floating rate, so there's some protection if interest rates rise. Now because of this waterfall structure, the equity tranches takes the first losses, then the lower rated debt tranches, and finally if it gets to that this senior triple, a. rated debt trench suffered losses. That hasn't happened before. The SNP does a global Cielo report looking at default rates. From Nineteen ninety-six to twenty, eight eighteen overall default rates for CEELO's was zero point five percent. The worst vintage year was sea ellos issued in two thousand eight. there. The default rate was one point seven percent. There have been no defaults in CEELO's issued between two thousand, nine and two thousand eighteen. And from that one, thousand, nine, hundred, sixty, two thousand eighteen period, there has never been a default for the triple eight trunch, and only one default for the AA trunch. Now as you know, we are in a pandemic and defaults within the High Yield Bond and leveraged loan space is increasing. Fitch estimates the twelve month default on leveraged loans is four percent, and that more than two hundred billion dollars of leveraged loans will default through year end twenty, twenty one. Adequate to a two year cumulative default rate of fifteen percent. Just because leverage loans are defaulting doesn't mean all the different tranches of a coo is experiencing a default. So a report on the wall, Street Journal from mid May that showed about ten percent of Cielo managers have been diverting cash flow away from equity investors and going to the debt tranches, which means there have been default that are starting to impact that junior equity trunch. What is different from this cycle, though is leveraged, loans are more risky and we discussed that in episode to a six. The covenants on these loans are less restrictive. The credit quality is lower. The financials are weaker and so we should expect defaults to increase. Question is will see a low default and other defaults and other loans impact banks to where we should be worried about our savings or investments that we might have in banks. In banks securities. Including their common stock and their preferred stock.

United States Frank Partnoy Ceelo Cielo Non Investment Grade Company CLO Uc Berkeley SNP CLL COO Fitch AA L O Street Journal
Warren Buffett and the Berkshire Hathaway Annual Meeting

Stansberry Investor Hour

12:16 min | 9 months ago

Warren Buffett and the Berkshire Hathaway Annual Meeting

"Okay. Let's talk about Warren Buffett and his comments at the Berkshire hathaway meeting. He talked for over four hours so I might not be able to get to everything in fact. I'm just going to get to a few topics that really stood out. And this is by the way. If you haven't listened to it you can go listen to it just Google Berkshire Hathaway shareholder meeting yacht. Yahoo Finance has it and you can find it on Youtube. And it's worth it. It's worth listening to Warren Buffett. Talk for four hours. Once a year it really is even if you disagree with every syllable that comes out of his mouth. It's still worth listening to. So I think one of the really big perhaps the biggest topic that he covered couple of weeks ago he became public that he started selling his position in the Airlines. And he put one slide up the beating that showed the first quarter purchases of equity securities by Berkshire hathaway including buying back their own stock but they made investments in equities of fourbillion. They sold two point two billion of equities and they bought back a billion seven of their own stock not really huge numbers for Berkshire but then he put up a slide. That showed in the month of April because the first quarter ends March thirty first right month of April purchases of equity securities. Four hundred twenty six million peanuts nothing for Berkshire. He was asked about it. He couldn't even remember what it was and he said I might not have done. It might have been you know. His his top capital allocation lieutenants. Ted In todd. He bought bags zero stock. We'll talk about that in a little bit and sold in the month of April alone. Six and a half billion including all the rest of the airline stocks okay. Why did he do this? Well he he put up a slide and he said you know it was not one hundred percent that's six and a half billion was not one hundred percent of what we sold in April. But you knows mostly mostly airlines said. I made a mistake and he went through the history of the position and if you look at the filings. He started buying these things in late. Two Thousand Sixteen. He said we paid. Oh I don't know seven or eight. Billion couldn't even remember how much to own ten percent of the four largest airlines starting at that time and then into two thousand seventeen you kept by and he figured that for seven or eight billion. He was getting a billion dollars worth of earnings that he thought was likely to go up over time and at that time he did an interview with. Becky quick of CNBC. And he said the airlines have had a bad century and they've had like over one hundred bankruptcies and it's been terrible and they've consolidated into four big ones. That are doing pretty well etcetera etcetera. And you know we want a piece of it and those four those top four American United Delta and southwest accounted for like eighty percent of the domestic airline capacity. So right there. It sort of felt to him. It seems like when he bought the railroads who had been through. I don't know about a difficult century. But yeah pretty pretty tough time over the past decades before he bought and then turned into a pretty good bet because they had consolidated down they had been through restructurings same type of a situation and they had some pricing power to and I remember hearing about that idea from the guys at allegany well run insurance company PUBLICLY COMPANY TICKER SYMBOL. Why the letter? Y and was by when Burlington northern was like I don't know twelve bucks a share or share or something like that maybe even cheaper and Buffett bought the whole thing of Burlington northern for one hundred dollars a share so late to the party but still thought it was a good bet and same thing he said we treated it mentally as if we were buying a business meaning as we were buying one hundred percent of a whole business and if you've heard him talk over the years they liked to buy one hundred percent of the business they liked by as much as they can once they liked to sing and like the hold it forever. That's their favorite thing to do. And you know this look like an equity position that he might hold effectively forever and he said you know the companies were well managed and all that stuff but now he blew out the whole position when the whole world he sold into weakness right. This is the guy who says be greedy when others are fearful while he's fearful when others are fearful because he's not buying anything and he sold this massive position and is not spending any of his giant hundred and thirty billion dollar pile of cash. So that's kind of unusual. And he said the airline business. I'll just quote a few little things he says. The airline Business Blah Blah Blah. I think it changed in a very major way is obviously changed. And he said these four companies are going to borrow tenor. Twelve billion. Each in some cases they're having to sell stock or the right to buy stock that takes away from the upside then a little bit after that he said. I don't know the two three years from now. That people will fly as many passenger miles as they did last year. In Twenty nineteen so in other words this business has changed so much and these companies are so deeply impaired that it makes no sense for him to continue to hold the equities. He's held things through bet. He's a publicly traded companies through bankruptcy. At least one right. Us G it was an unusual bankruptcy situation. So this really tells you. The buffet thinks that people have changed their their travel. Habits have changed and they're not gonna fly as much even when things are all opened up and who knows one would think over this time period. He's talking about two three years. Whatever that the corona virus will be a thing of the past? Nobody's worrying about it anymore. You know we'll see but I just thought it was really interesting that you know we find buffet just being really fearful not deploying capital and blowing out this position into weakness having bought it in the first place. I've never recommended an airline stock in extreme value. And I never will and I was shocked when he did it and I always wonder like how how going to work out but you know obviously not too well so the airlines and I here where he's coming from because the airlines I read today. One article said they're burning ten billion monthly as as an industry. And you know they've already gotten something like fifty billion and bail out. There's another there's more money that they're going after under this. Cares Act Law. That was passed but united like they got five billion bucks and only one and a half billion. That was alone. The other three and a half billion was a grant grant. Yeah you've heard me money. Just taxpayer money just given to the airlines. And of course they put stipulations on this thing but they've already found the loophole and the stipulation was. You can't fire anybody you gotTa keep all your employees and you can't reduce anybody's hourly pay or you can't reduce anybody salary right and I think you can't even buy back stock and other things. But they found a loophole. And you might have heard it already. And they're reducing people's hours. They don't pay them less per hour but they pay them less by reducing their hours which you know as a business move makes sense with dramatically reduced demand for this service but I can understand how nobody would want to get involved with the airlines. Who knows if the equity value is going to be anything like what it is right now impaired as it is. Let's talk about buybacks? Buffet talked about buybacks. He didn't buy back any shares in April at all they bought back a billion seven in the first quarter which is really nothing for them and basically the important tidbit here. Is that the stock to him. He says was no more compelling around two hundred and fifty thousand share than it was when he was buying it back at three hundred thousand share. What does that mean? Well it means exactly what you think. It means. It means the intrinsic value of Berkshire Hathaway's impaired at least that amount like roughly seventeen percent. I believe that is so or more bright. If it's not compelling at either a at two hundred fifty thousand no more so than than it was thirty or three hundred thousand. That's a big deal. And he also mentioned in the same breath telling you why he wasn't buying the shares back in the same breath. He mentioned the option value of cash. Right I it other words. I'd rather hold onto my cash than by back my stock seventeen percent off where I was buying back before. Wow so he did this whole thing. He started out with this whole long thing about never bet against America and he went all through history and all this stuff and he's got a great knowledge of history. It was fun to listen to it but he says all this stuff about don't bet against America in the long term and that was another thing he kept doing. Saint don't bet against long-term but he constantly throughout his talk and answering questions. He was constantly differentiating from the long term. Bet and the nearer term couple years to three years. What does that tell you that tells you that? He thinks that we are not out of the woods yet. And you can't call him barish but he's nothing like bullish. Some investors Whitney Tilson commented. He was part of the presentation and he commented said you know he went and he thought it was raining. Gold in March when the market was getting absolutely obliterated buffet obviously did not think it was raining. Gold Okay. That's really interesting. So they bought by zero in April. You know. That's that's the evidence there he said I would rather be holding my cash. And he also talked about the general idea of buying back stock because he was asked about it one of the shareholders sentence a question about it and he framed it in a really good way that. I think I think you need to hear about. He said imagine that we were just partners. In a business you know fuel vessel. Each put in a certain amount of money in the business does well over time and goes up in value and you know after many years of success one of us wants to take money out of the business. Well if your partner came to send that you say well. That's perfectly reasonable and a way to do that would be for the other partners to buy a little bit of stake and so you know. Maybe he owns thirty three percent. Let's say there are three of you and and he sells a little bit and after that hill own thirty percent or something and you you know then you'll each own a little bit more right. So that's the way he looks at share repurchases as an individual partner can choose. An individual shareholder can choose. Whether or not they WANNA participate and sell the shares whereas if he issued a dividend. It's you're forcing cash down everyone's throat and they get hit with taxes and you're taking money out of the business off the table right. I thought that was pretty interesting. And he's like he doesn't buy any of the political what he calls political correctness about share repurchases. He's a most people do them wrong. He said that consistently for a long time. You have to do them right and the right way to do it is the buy it back in a discount to the intrinsic value and he even said. You won't always be right when you're doing that. You'll make mistakes and doing that but you should still do it that way. And the steak is probably you know. He bought it back at a higher price. A billion seven worst and then he refused buy back in a lower price so he might have even talk about his own mistake and buying shares back but over time the right thing to do is buy it back at a discount. And you know you'll be right enough. If you do it over a period of many years I found all that really intriguing. Him telling US why he didn't buy back the stock and he mentioned specifically that he said you know for example.

Berkshire Hathaway Warren Buffett Partner Berkshire Google Burlington Youtube Yahoo Finance Ted In Todd Fourbillion Cnbc American United Delta Buffet Whitney Tilson America Becky Buffett
"equity securities" Discussed on Business Basics

Business Basics

10:13 min | 10 months ago

"equity securities" Discussed on Business Basics

"So in the world of investing. You have what is called a security which is basically anything that you can invest your money in and invest meaning you as the investor you give your money to a corporation for example in the hope of that corporation rewarding you and having their value increase and you ending up with more money at some point in the future and the unique aspect about security. Is that the price is always changing so some examples of a security are stocks or bonds stocks are shares of a company so in other words ownership and bonds. Are you giving money to someone? Say the government or could even be a company again but the difference between the stock and bond is that the bond money has to be repaid to you the investor in a fixed amount of time whereas the stock can be kept for as long as you want to keep it or for short as you want to keep it and soap bonds fall under what are called debt securities where the company takes on. Dutt from you from you giving them the money and then they end up repaying to whereas equity securities stocks. They grant you ownership. Which is what makes stocks unique. You get some amount of ownership within a company so stocks are traded on what are called stock exchanges and you can think of them as marketplace for stocks. So if you go to an auto parts store to buy auto parts you can then similarly go to stock exchange to buy stocks and just like how an auto parts store might also have a website where you can purchase auto parts and have them delivered to your home. Stocks can also be traded in-person going to the stock exchange or virtually online the difference though in terms of the analogy between auto parts stores and Stock. Exchanges are the. There's only one real physical store in America. And that is what's called the New York Stock Exchange and when you hear the new the New York Stock Exchange. That's the typical image of stocks and investing. That's rethink of Wall Street. You think of in Lower Manhattan in New York City. People on headsets ringing bells and they're surrounded by computer screens. They're staring up and when you hear about Wall Street. That's the image that comes to mind so this store the New York Stock Exchange. It's open every day. Every weekday from nine thirty. Am to four PM. Standard Time and their website for their virtual platform is so in our in algae the website that is also been from the same time and most stock trading happens on the NYSE's virtual platform rather than their physical one. So even though you may see images of traders wearing headsets and running around in New York City the most common place where stocks are traded is virtually through computers and so the New York Stock Exchange is the largest valued stock exchange in the world. It has some twenty eight hundred companies in America that trade on the New York Stock Exchange. Now one of the NYSE's competitors and think about her analogy is called the Nasdaq when it's another stock exchange or another store that sells stocks but it trades mostly technology companies. And so. This is where you're gonNA find your apple. Google Microsoft Amazon and FACEBOOK STOCKS. But the difference between the Nasdaq stock routine. The NASDAQ STOCK EXCHANGE AND THE NEW YORK. Stock Exchange. Is that any transaction done on? The Nasdaq all happens. Online or virtually the Nasdaq doesn't have a store. You can think of it as Amazon except for the fact if except if you ignore the fact that Amazon has few physical stores and in addition to the New York Stock Exchange and the Nasdaq. You have some other stock exchanges around the world. Some of the famous ones being the Japan exchange group trades Japanese stocks. Shangai exchanged group changed trade. Some Chinese stocks one in stock exchange traits them English stocks. So when you hear when people are referring to the stock market and you hear them talk about Ooh. The Dow Jones Down Fifty points or the S. and P. Five hundred is up thirty percent for the year or the Nasdaq just went down. So you're probably thinking to yourself. What are these? I know what stocks are but what the Dow Jones is. Isn't that sounds like somebody's name? So these three these three examples that I just mentioned those are what are called. Stock Indexes and stock indexes are basically averages of the stock market's performance so for example the Dow Jones that is made up of thirty different companies throughout America and these are thirty of the largest valued companies in the United States. Some examples are apple. Microsoft Boeing Walmart Disney J. P. Morgan. So chances are for the average. Us consumer you likely have some daily interaction with pro with products from these thirty companies. So if you have an iphone than air go you're with you have a connection to apple if you use a windows computer than you have connection to Microsoft if you go and show your kids Disney movies connection to Disney. If you're going to take a flight across the country or around the world you could be flying on a plane. That's built by Boeing. But chances are that the Dow Jones is going to be more retail focused because it has these days we direct to consumer interactions with a with the average. Us consumer so the Dow so in order to take away from this retail heavy focus of the Dow Jones there is another index called the S. and P. Five hundred and as you can guess from its name. It has five hundred companies and basically it is a larger version of the Dow except that it's not so direct to consumer focused. It's going to have more utility stocks more technology stocks except not so famous technology companies. So it'll sometimes have companies that do the nitty gritty. These are GONNA be manufacturing companies that then sell their products not to the consumer but to other companies that sell products to then to the consumer and so because the S&P five hundred has five hundred companies compared to the Dow Jones's thirty companies the S. and P. Five hundred is better indicator of how the overall economy's doing simply because it's a larger sample size. The more companies there are the better it is and because it's also broader focus than the Dow Jones than it's also a better indicator of the US economy. And then finally you have the Nasdaq Index and the NAS stuck in ducts. Even though it has the same name as the Nasdaq Stock Exchange is slightly different from the Nasdaq Stock. Exchange on the Nasdaq Stock Index. You have three thousand three hundred companies trading on there but these are only companies from the Nasdaq Stock Exchange so we said that the Nasdaq Stock Exchange is pretty tech heavy therefore the Nasdaq index is going to be very tech heavy so if the Nasdaq index is doing very well that suggests that technology companies overall very well whereas you can't necessarily assume that the Nasdaq index is doing well. Then utility companies are doing well. So you have these three different indexes that are the most famous in the world and these are designed to give indicators of the. Us economies help so if we we get that what stocks are and how they're traded but essentially what causes the stock to move what causes these exchanges to have to move up and down and so if we think about what causes a stock to move whenever you transact stock whenever there's a purchase or selling stock there's always going to be one person buying and one person selling that stock and the seller is going to give the price that they're going to sell the stock at that is called the ask price and the buyer is giving the price that they're going to buy the stock at the bid price and so whenever this bid price and the ask price are equal to each other. Then you have. A transaction occurred then. The stock is moved from the sellers portfolio over to the buyers portfolio. And so if we think about it in terms of a more holistic outlook. Let's say you have your invested into a company that has reported very good earnings and it also reports a good future outlook and therefore that companies expected to gain in value in the next few months. And it's expected to gain pretty substantially so because that company looks very attractive. You're going to have a lot of investors who are not who are who are not currently invested in that company. Want to get in on the deal before it goes up in value. So you have a lot of people looking to buy that stock and then you have so many buyers that there's a high demand and if you'd think up if you think back to the principal supply.

New York United States America New York City apple Microsoft Amazon
"equity securities" Discussed on KDOW

KDOW

04:58 min | 2 years ago

"equity securities" Discussed on KDOW

"Four two seven eight. Okay. Where are you going to lose thirty six million jobs intelligence here over the next few years? I think I hope people are not panicking over that. Because our system economic system always destroys jobs and creates new jobs always has. That's the way we progress. That's the way we grow. Not gonna be able to stop it and robot robots are not going to replace everybody. But they're gonna pay, you know, a lot about a quarter of the US jobs over the next ten fifteen years, maybe twenty automation is just going to happen. And you're not gonna be able to stop it. What what the means? What that means is your skill set is going to have to all everybody's skill set is going to have to. Up go up a notch. You're gonna have to re skill yourself or you're just gonna have to learn new skills, and when you're coming out of college, make sure you're not learning the old old job skills that you're not gonna be able to use. And it's going to be a while some people think it's just going to be a few years away some people thinks a couple of decades. And I'm thinking the decades are probably more accurate than the few years away. Why do I say that? Well because. Is been a promise has been coming on a long time. And it's just not coming out very fast. It's not as fast as everybody thought. It would be. So don't worry. The machines are not going to take over everything. But they will take over routine has things could be checkout. You see it? Now, ready checkout kiosk that you can check out yourself. That's just going to get more and more and more. So low skilled unskilled labor is gonna be in trouble. There's always gonna be a need for that. But the that that labor is going to keep shrinking with automation. Or anytime. Listen line, eighty ninety nine chart is the investors spend you get your questions in whenever you want to. Here's a question that came in earlier. Uh-huh. Calling about. Aberdeen australia. Just curious your take on this equity fund? The reason that interests me is due to its high yield high dividend. You could touch on that one of your podcasts. That would be great. Thank you. Okay. Aberdeen Australia equity fund. I f isn Frank. Closed in. You know, what I mean by that close in invest in equity securities of Australian companies for a long term capital appreciation in versus an open in. It's like an ETF open versus closed them. Open opening majors unlimited number of share. So for buyers is they just keep buying more shares because they keep buying more stocks. The whatever whatever the ETF is tracking cozy in means. There's only a finite number of shares. They only show one million shares. That's it. This one is nineteen million or show. So they only have a finite number share. So the holdings inside the closed in fun could don't necessarily trade at net asset value, whatever the value is that of the holdings, they have sometimes it can be treated at more or less depending on how excited people get about. What the holdings they could drive the price up more than it's worked or down. Down less than it's worth. So if you want to be in a stray area, this is a type of fund you could buy I'm not too keen on his story because they're tied very tightly to China. And I'm not just sure how that all gonna work out yet. I think we're might be premature. In investing member, Australia is in the Asia area. And they do a lot of exports and imports from China. So if China's suffering they suffer. That doesn't mean you don't get into it. Because you want to buy things their low price, and this is a pretty low price five dollars and fourteen cents. But I'm not talking about that as a share price. I'm talking about the pretty low price because of that problems that China has had. Respected the entire Asia area. Jerry Paolo Alto wants talking about rebalancing Jerry need to rebalance. Mainly probably.

China Asia australia Jerry Paolo Alto Aberdeen Aberdeen Australia US Frank ten fifteen years five dollars
"equity securities" Discussed on 760 KFMB Radio

760 KFMB Radio

02:30 min | 2 years ago

"equity securities" Discussed on 760 KFMB Radio

"Suspicious package found outside a fire station in San Diego today was found to be harmless. According to with authorities a bomb squad. X Ray the fifteen by fifteen inch box. That was taped up with the words caution and dangerous written on it. It was found shortly after three this afternoon outside station. Fourteen on thirty second street. This news sponsored by mothers against drunk driving right now. Skies are mostly cloudy. It's fifty seven degrees at Lindbergh field. AM seven sixty K F, B, talk and breaking news. Every fifty two minutes. Someone is killed by a drunk driver. Join mothers against drunk driving at a walk like mad five K near you. Sign up at walk like mad dot org. With a partial government shutdown now in its second weekend about to go into a new year and the border wall money this feud behind it far from resolved. White House counselor Kellyanne Conway offered poetic, fix it. Advice on Fox News Sunday to come back. Nancy Pelosi needs to come back from Hawaii less whole lot more moolah for the DHS cousins a border patrol funding. Our border security wrong says Montana democratic Senator Jon tester, border security means border wall. Russell democrats. See that is a nonstarter if the president wants to continue to take campaign promise that he made which is to have Mexico pay for a wall and say the rules have changed now we're still going to build a wall. But we're going to have the American taxpayer pay for it. We're gonna use the American taxpayer like an ATM machine. That's not the right direction to go. He was on face the nation, though. Vital government functions continue to be funded and performed about a quarter of the government is unfunded. Either. Not functioning or cutback CBS news update on Tom forty. Bulla North Dakota. Real estate today because knowledge is power. Back again with our special show, ten ways to increase the value of your home in entire program, dedicated to helping you grow equity security and market value by making your place worth more than it is right now. Coming up in this half hour, what would have professional appraiser due to their own home to make the maximum possible value that story straight ahead on ten ways to increase the value of your home. But first let's check in with Bill Thompson in the real estate today newsroom. Stephen pump buyers.

Russell democrats Lindbergh field Senator Jon tester San Diego Nancy Pelosi Kellyanne Conway Bill Thompson CBS Montana North Dakota Tom forty White House DHS president Mexico Hawaii fifty seven degrees fifty two minutes seven sixty K
"equity securities" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

03:23 min | 2 years ago

"equity securities" Discussed on Bloomberg Radio New York

"Provided with insurance allows me to make the that I wanna make if I'm an institution. So that being the case if it is what fidelity wants it to be. And what you say it should be what I'm getting at is. What does that mean? What does that mean for the family office? What does that mean for the hedge fund endowment pension plan? It makes it easier. Listen, Jeff, Jeff Stryker at at b-actor are ice. They put out back there. They're also coming up with a custody solution. Same firm that owns the AFC. Indeed. Goldman Sachs has talked about getting into it bit. Go is is got a solution. And so what's what's good for the space is that? You're getting multiple people involved in the place all with credible names. And it's going to get that much closer. From the consultants say, hey, this is a safe asset class we already had Yale Harvard, Stanford North Carolina make investments into crypto venture funds or funds that are gonna ask based in crypto that do venture. That's a big big deal. And so slowly. But surely, you're seeing institutions getting more comfortable with class you have something of a vested interest here. Right. If institutions start to do more business and crypto some of it is going to flow the way of your firm, but you've been in a dialogue with these investors. Some of whom are taking baby steps and some of whom are still on the sidelines. If they can get custody if they can get a reliable agency trading partner and fidelity does that mean that they're going to start one hundred percents? I one hundred percent think no. It's not gonna happen overnight fidelity announced that it's not gonna win start fidelity announced their business that I know probably be up and running in January. Accu- one. Right. And so and then you gotta run some water through the pipes. So my guess is you start seeing institutional flows into just purely crypto assets late first quarter early second quarter. This does not deal with the regulatory problem on its does not deal with the scams and the frauds, and it does not deal with the compliance issue writ large. Although it might solve some of the compliance questions. We're making slow progress on regulatory, right? You had the SEC come out and said, okay, bitcoin bitcoin cash theory of these aren't really securities their utility tokens. So that they got grandfather's grandfather. But that's that's a big deal. And so it allows of like, hey, we can start where we don't there's regulatory certainty, and so I think over time you're going to get more and more regulatory certainty. It's not they're completely hundred percent. Most firms. Ours included are operating under the rules of that we would use if they were currencies or equity securities, right know, your customer, anti money laundering. Same type process that we use when I was in fortress, golden Sachs you've been right? And you've been wrong on this custody issue wrong on the timing. You thought we would see the institutional uptick already. So one thing I've learned in this process is everything takes a little longer than you're hoping does. Right. The whole crypto ecosystem is still like a fourth grader, and we all want it to be a high school graduate tomorrow. And then a PHD the next day and this stuff just takes longer. And so people really if you're going to put your reputation of seventy eight years of fidelity on the line. He better be darn sure that your process works. And so, you know, they've been working on this for years. And so it's really exciting that they're they're joining we're going to be one of their first clients exciting for us that was galaxy.

Jeff Stryker Goldman Sachs AFC Accu golden Sachs Yale Harvard Stanford North Carolina partner SEC bitcoin one hundred percent seventy eight years hundred percent
"equity securities" Discussed on CNBC's Fast Money

CNBC's Fast Money

02:14 min | 2 years ago

"equity securities" Discussed on CNBC's Fast Money

"Quickly yeah no more on that coming ahead well walmart's significantly lower than it's all one hundred ten dollars at certain point i think walmart valuation matters and if you like walmart valuation target valuation has to matter despite what amazon is doing here foods all right switching gears all of the major crypto currencies getting hit today after reports that the are looking to crack down on the coins baath asahi's at the new york stock exchange with all the details hi bob l l o melissa o melissa we've reported in the past about these battles between the and the cftc over who if anyone should have regulatory control over crypto currencies and even exchanges now the cftc has already said bitcoin is a commodity period it is not a security and that it should be regulated by the however the cfcc has not made any claims about other crypto currencies and that's why we're in regulatory gray area right now so today the wall street journal reported that other crypto currencies are indeed under scrutiny by the sec including ethereal the second largest cryptocurrency by market capitalization so the issue is this our other crypto currencies securities if they are they can be regulated by the sec so in general equity securities for example represent ownership interest in an entity ethereal coins were pre mind for an online crowd sale it kind of fits another key issue is whether the creators of crypto currencies if there or ripple exert significant influence over their value like management does over publicly traded equities now if they do it could arguably be made a security and come under the supervision of the sec now a group of venture capitalist involved in the creation of if there has strongly disagreed with this line of argument they argue that ethereal is paid to people who run the program on their computers and that ethiopia was mind not created maybe they have already asked the sec for regulatory exemption but the sec has not yet issued a ruling by the way bitcoin etf's the one thing everyone agrees are clearly under the purview of the sec and so far they have not approved any crypto etf's back to you melissa.

walmart amazon cftc wall street journal sec ethiopia new york one hundred ten dollars
"equity securities" Discussed on KSFO-AM

KSFO-AM

02:29 min | 3 years ago

"equity securities" Discussed on KSFO-AM

"So much consumer confidence that when they dump all their stark somebody's snatches it up okay you're you're out let me answer some of this stuff before you get going you're right okay obama did print money you say who did it the fed the federal reserve did it as opposed to be independent of the white house like the fbi uh was independent of a murder and at what had was called quantitative easing it was printing money but it didn't go into the general money supply the money was used in a circuitous way to purchase equity securities in the stock market but the key ingredient here that i need to remind you of is during the eight years of obama what did not happen interest rates did not go up they stayed you could get money for zero word now the reason that's important the fed not raising rates during obama obama's economy was us was a straight line deadline rear and so there was no no worry about the economy overheating which is the traditional reason the fed raises interest rates the slow down the economy so there are no rate increases so there was nothing negative that happened to the obama economy in fact if it weren't for the quantitative easing in the spending the obama administration would have had nothing to talk about the stock market was the only thing they can point to to show that their policies were having a positive impact on the economy but they weren't having a positive impact on the daytoday free market economy where you and i live now what's happening the february reserve is i think the fed is what's taking the market in part not totally but all of these france and promises to raise interest rates that's the last thing these investors want to hear the last thing because it's going to slow down the economically wants the economy to slow down we're just now reviving at why would they wanna slow it down but raising interest rates will do that raising interest rates gonna make money more expensive to get miss going to have a negative impact on the on the amount of investment it varies places and some are thinking that this is all part of a strategy to bring trump down that while he's out there touting the market selling the market pointing to.

obama murder fed obama administration france fbi eight years
"equity securities" Discussed on KSFO-AM

KSFO-AM

02:09 min | 3 years ago

"equity securities" Discussed on KSFO-AM

"It that they're causing all of this volatility in at one day up a thousand the next day down five hundred than you know the rollercoaster that it's on news and with you yet computerprogrammed trading him to all of this and there are some who were thinking that this can be made to happen simply wife the feret of mfn has said that there might be four different rate increases this year alone when there were none during the eight years of obama word so your your your your instincts on this i think a pretty pretty good uh roberto the deep state it goes back well if you want to call the fed the deep state i mean it's it's it if we can't get to it so it may as well be uh you asked how how it um you know how they do it it was simple they printed money and i i look i don't know the the process i did i just don't remember it but the end result of it was that the money printed ended up in the stock market now i don't know who got it and i don't know how they chose who got it did hedge funds get it did dev banks gathered than they buy securities all i know is that it ended up there and it resulted in more equity security is being purchased with the money that was printed and they had to hide this soon normally printing money is one of the fastest way to raise inflation but they kept inflation rates i'ma was practically zero for so many years uh with the with the obama economy now threatening to raise interest rates four times this year alone and the uae who they blame and they're blaming trump they're blaming trump's tax cuts they're blaming trump's tax cuts for all the new hiring that this is putting too much inflationary pressure on the economy and we've got a slow it down i'm i'm suspicious of this uh two two and anna to an extent uh but if it's is another one of these areas where average ordinary people cannot possibly know as much as the.

mfn uae trump obama eight years one day
"equity securities" Discussed on KTLK 1130 AM

KTLK 1130 AM

02:26 min | 3 years ago

"equity securities" Discussed on KTLK 1130 AM

"Of the white house lightly fbi was independent of over time at one hip was coq quantitative easing it was printing money but it didn't go into the general money supply the money was used in a circuitous way to purchase equity securities in the stock market but the key ingredient here that i need to remind you of is during the eight years of obama what did not happen interest rates did not go up they stayed you could get money for zero word now the reason that's important the fed not raising rates during obama obama's economy was us was a straight line deadline rear and so there was no no worry about the economy overheating which is the traditional reason the fed raises interest rates to slow down the economy so there are no rate increases so there was nothing negative that happened to the obama economy in fact if it weren't for the quantitative easing in the spending the obama administration would have had nothing to talk about the stock market was the only thing they can point to to show that their policies were having a positive impact on the economy but they weren't having a positive impact on the daytoday free market economy where you and i live now what's happening the federal reserve is i think the fed is what's taking lamarque in part not totally but all of these france and promises to raise interest rates that's the last thing these investors want a here though we're asked thing because it's going to slow down the economic wants the economy to slow down we're just now revive why would they wanna slow it down but raising interest rates will do that raising interest rates gonna make money more expensive to get miss going to have a negative impact on the on the amount of investment it varies places and some are thinking that this is all part of a strategy to bring trump down that while he's out there touting the market selling the market pointing to it that they're causing all of this volatility in at one day up a thousand the next day down five hundred than you know the rollercoaster that it's been on news and with you when you add computerprogrammed trading into all of this and there are some who were thinking that this can be made to happen simply wife the.

obama fed obama administration france fbi eight years one day
"equity securities" Discussed on WBEN

WBEN

02:25 min | 3 years ago

"equity securities" Discussed on WBEN

"It up you're getting it you're let me answer some of this stuff before you get going you're right okay obama did print money you say who did it the fed the federal reserve did it they're supposed to be independent of the white house like the fbi uh was independent of occurred and at one head was called quantitative easing it was printing money but it didn't go into the general money supply the money was used in a circuitous way to purchase equity securities in the stock market but the key ingredient here that i need to remind you of is during the eight years of obama what did not happen interest rates did not go up they stayed you could get money for zero bird now the reason that's important the fed not raising rates during obama obama's economy was us was a straight line deadline greer and so there was no no worry about the economy overheating which is the traditional reason the fed raises interest rates the slow down the economy so there were no rate increases so there was nothing negative that happened to the obama economy in fact if it weren't for the quantitative easing in the spending the obama administration would have had nothing to talk about the stock market was the only thing they can point to to show that their policies were having a positive impact on the economy but they weren't having a positive impact on the day to day free market economy where you and i live now what's happening the federal reserve is i think the fed is what's taking the market in part not totally but all of these france and promises to raise interest rates that's the last thing these investors want a here thought were asked thing because it's going to slow down the economically wants the economy to slow down we're just now reviving at why would they wanna slow it down but raising interest rates will do that raising interest rates gonna make money more expensive to get me going to have a negative impact on the on the amount of investment it varies places and some are thinking that this is all part of a strategy to bring trump down that while he's out there touting the market selling the market pointing to it.

obama greer fed obama administration france fbi eight years
"equity securities" Discussed on WBT Charlotte News Talk

WBT Charlotte News Talk

02:13 min | 3 years ago

"equity securities" Discussed on WBT Charlotte News Talk

"The sadly the federal reserve debt it is supposed to be in independent of the white house light the fbi was independent of murder at one head was called quantitative easing it was printing money but it didn't go into the general money supply the money was used in a circuitous way to purchase equity securities in the stock market but the key ingredient here that i need to remind you of is during the eight years of obama what did not happen interest rates did not go up they stayed you could get money for zero word now the reason that's important the fed not raising rates during obama obama's economy was us was a straight line deadline rear and so there was no no worry about the economy overheating which is the traditional reason the fed raise as interest rates the slow down the economy so there are no rate increases so there was nothing negative that happened to the obama economy in fact if it weren't for the quantitative easing in the spending the obama administration would have had nothing to talk about the stock market was the only thing they can point to to show that their policies were having a positive impact on the economy but they weren't having a positive impact on the day the day free market economy where you and i live now what's happening the federal reserve is i think the fed is what's taking the market in part not totally but all of these threats and promises to raise interest rates that's the last thing these investors want to hear thunder ass thing because it's going to slow down the economy he wants the economy to slow down we're just now reviving it why would they want to slow it down but raising interest rates will do that raising interest rates going to make money more expensive to get miss going to have a negative impact on the on the amount of investment it varies places and some are thinking that this is all part of a strategy to bring trump down that while he's out there touting the market selling the.

fbi murder obama obama administration fed white house eight years
"equity securities" Discussed on WTVN

WTVN

01:38 min | 3 years ago

"equity securities" Discussed on WTVN

"It up you're you're at let me answer some of this stuff before you keep going you're right okay obama did print money you say who did it the fed the federal reserve did it they're supposed to be independent of the white house like the fbi was independent of her hand at what head was called quantitative easing it was printing money but it didn't go into the general money supply the money was used in a circuitous way to purchase equity securities in the stock market but the key ingredient here that i need to remind you of is during the eight years of obama what did not happen interest rates did not go up they stayed you could get money for zero word now the reason that's important the fed not raising rates during obama obama's economy was us was a straight line deadline greer and so there was no no worry about the economy overheating which is the traditional reason the fed raises empress rates to slow down the economy so there are no rate increases so there was nothing negative that happened to the obama economy in fact if it weren't for the quantitative easing in the spending the obama administration would have had nothing to talk about the stock market was the only thing they can point to to show that their policies were having a positive impact on the economy but they weren't having a positive impact on the day to day free market economy where you and.

obama fbi greer obama administration eight years
"equity securities" Discussed on KKOB 770 AM

KKOB 770 AM

01:40 min | 3 years ago

"equity securities" Discussed on KKOB 770 AM

"Who did it the fed the federal reserve did it they're supposed to be independent of the white house like the fbi uh was independent of ochre hand at one had was called quantitative easing it was printing money but it didn't go into the general money supply the money was used in a circuitous way to purchase equity securities in the stock market but the key ingredient here that i need to remind you of is during the eight years of obama what did not happen interest rates did not go up they stayed you could get money for zero word now the reason that's important the fed not raising rates during obama obama's economy was us was a straight line deadline rear and so there was no no worry about the economy overheating which is the traditional reason the fed raises interest rates the slow down the economy so there were no rate increases so there was nothing negative that happened to the obama and konomi in fact if it weren't for the quantitative easing in the spending the obama administration would have had nothing to talk about the stock market was the only thing they can point to to show that their policies were having a positive impact on the economy but they weren't having a positive impact on the david a free market economy where you and i live now what's happening the federal reserve is i think the fed is what's taking the market in part not totally but all of these france and promises to raise.

obama fed obama administration france fbi eight years
"equity securities" Discussed on WBZ NewsRadio 1030

WBZ NewsRadio 1030

02:41 min | 3 years ago

"equity securities" Discussed on WBZ NewsRadio 1030

"To the program ric edelman here thanks for hanging around this halfhour brenda bells in the studio with me isabelle barrow brandon poor so and you would not believe the announcement made by finra of this week finra has just find citigroup global markets five and a half million dollars and the reason for this is just it just blows me away citi group according to finra displayed inaccurate research ratings for numerous equity securities now that's code for eight teen 100 stocks but by rating you just mean is it a buy or sell yeah citi group issued reports analysis recommendations to both its brokers telling them what to tell their customers and to the customers themselves these ratings went out in the form of account statements it went out an email alerts it was on the city group online portal that clients and customers got to look at an 1800 of these stocks over a fiveyear period this isn't something the just or pse this was from 2011 to 2015 these 1800 securities had the wrong information displayed this is thirty eight percent of all the stocks that citigroup does analysis for and what it when i say it had the wrong rating instead of saying by it said sell off i mean can you imagine i mean all they're doing nothing buy or sell exactly where i see they have a full research report and the reports themselves were correct you know the analyst wrote the reports what nobody reads the reports you just it's like a movie review great i just look at the stars and you're looking to your statement and you see hey my sack is still a by so hey i might as well keep it right and a broker's doing the same thing so brokers according to two finra the inaccuracies had quote widespread adverse consequences unquote citigroup brokers solicited thousands of transactions inconsistent with the actual ratings and they negligently made inaccurate statements to customers about the ratings they get this thing from their boss saying oh such and such stock is a sell they call decline on the foam and they say cell that stock when they meant by that star i mean can you imagine how many client portfolios contains stocks because they were told the.

ric edelman finra citi group analyst thirty eight percent million dollars fiveyear
"equity securities" Discussed on KSFO-AM

KSFO-AM

02:44 min | 3 years ago

"equity securities" Discussed on KSFO-AM

"Now here's wig at old man welcome back to the program ric edelman here thanks for hanging around this half hour brand of els in the studio with me isabelle barrow brandon poor so and you would not leave the announcement made by finra of this week finra has just find citigroup global markets five and a half million dollars and the reason for this is just it just blows me away citi group according to finra displayed inaccurate research ratings for numerous equity securities now that's code for eight team 100 stocks but by writing you just mean is it a buy or sell yeah citi group issued reports analysis recommendations to both its brokers telling them what to tell their customers and to the customers themselves these ratings went out in the form of account statements it went out an email alerts it was on the city group online portal that clients and customers got to look at an 18 100 of these stocks over a fi five year period this isn't something the just this was from 2011 to 2015 these 1800s securities had the wrong information displayed this is thirty eight percent of all the stocks that citi group does analysis for and what it when i say it had the wrong rating instead of saying by it said sell off i mean can you imagine i mean all they're doing nothing buy or sell exactly where i see they have a full research report and the reports themselves were correct you know the analyst wrote the reports what nobody reads the reports you just it's like a movie review right i just look at a star near looking to your statement and you see hey my sack is still of iso hey i might as well keep it right and a broker's doing the same thing so brokers according to two finra the inaccuracies had quote widespread adverse consequences unquote citigroup brokers solicited thousands of transactions inconsistent with the actual ratings and they negligently made inaccurate statements to customers about the ratings they get this thing from their boss saying oh such and such stock is a cell they call their klein on the phone when they say cell that stock when they manned by that star i mean can you imagine how many client portfolios contains stocks because they were told the.

ric edelman finra citi group analyst thirty eight percent million dollars five year
"equity securities" Discussed on Talk Radio WPHT 1210

Talk Radio WPHT 1210

02:47 min | 3 years ago

"equity securities" Discussed on Talk Radio WPHT 1210

"Is the rick edelman show now here's wig at man welcome back to the program ric edelman here thanks for hanging around this half hour brand of bills in the studio with me isabelle barrow brandon poor so and you would not believe the announcement made by finra of this week finra has just find citi group global markets five and a half million dollars and the reason for this is just it just blows me away citi group according to finra displayed inaccurate research ratings for numerous equity securities now that's code for eight teen 100 stocks but by raiding you just mean is it a buy or sell yeah citi group issued reports analysis recommendations to both its brokers telling them what to tell their customers and to the customers themselves these ratings went out in the form of account statements it when out an email alerts it was on the city group online portal that clients and customers got to look at an 1800 of these stocks over a fire five year period this isn't something the just or pse this was from 2011 to 2015 these 1800 securities had the wrong information displayed this is thirty eight percent of all the stocks that citigroup does analysis for and what it when i say it had the wrong rating instead of saying by it said sell off i mean can you imagine i mean all they're doing saying buy or sell exactly rice they have a full research report and the reports themselves were correct you know the analyst wrote the reports what nobody reads the reports you just it's like a movie review prey i just look at the stars and you're looking to your statement and you see hey my sock is still of iso hey i might as well keep it right and a broker's doing the same thing so brokers according to two finra the inaccuracies had quote widespread adverse consequences unquote citigroup brokers solicited thousands of transactions inconsistent with the actual ratings and they negligently made inaccurate statements to customers about the ratings they get this thing from their boss saying oh such and such stock is a cell they call decline on the phone when they say cell that stock when they manned by that star i mean can you imagine how many client portfolios contained stocks because they were told the.

ric edelman finra citi group analyst rick edelman thirty eight percent million dollars five year
"equity securities" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

02:05 min | 3 years ago

"equity securities" Discussed on Bloomberg Radio New York

"The most widely held etf with over two hundred billion dollars and assets let's talk a little bit about spyders because the numbers are really quite mindblowing s p y the stock symbol for the spdr sp 500 investment trust has two hundred forty billion dollars in assets last i looked it's by far the most widely held etf and if you look at the next closest sp 500 etf it's less than half the size how did the spies become the goto s p 500 etf it's a great question is a couple of really good reasons one we were first that always helps so that was the first mover firstmover advantage and it was by seventy years right because we all we you hear two different versions of that the second mass gets the cheese the pioneers of the ones with their arrow arrows in their back but that hasn't really seem to impact this in in a significant way while this by heads a few advantages one it made in it's not just that it was first it had established trading mine mean today spy by dow awaited volume as the most liquid equity security in the world that some of these army trades in and fund stats on us if traded at a penny widespread for twelve years to every day so that's been liaskas one set one sentence motion trains out of that aid trade five point five times more than apple in from one hundred million shares a day what sort of volume due to a state turns over it can turn on once he had changed all through i'm but he can turn 15 to 20 billion dollars in assets neck well that's assam be with the ones that that i hear that i love i mean there's the outpost out is good you take the next like eighteen etf combined lodged etf combined mmhmm and they don't have the same creating line while the better it's obviously a go to liquidity product for marketplace is not just about a buying hall product this liquidity product it's.

assam dow apple two hundred forty billion doll two hundred billion dollars 20 billion dollars seventy years twelve years
"equity securities" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

02:14 min | 3 years ago

"equity securities" Discussed on Bloomberg Radio New York

"Has two hundred forty billion dollars in assets lest i looked it's by far the most widely held etf and if you look at the next closest sp 500 etf it's less than half the size how did the spies become the goto s p 500 etf it's a great question is a couple of really good reasons one we were first that always helps so there was the first mover search mover advantage and it was by seventy s right 'cause we all we you hear two different versions of that the second mass gets the cheese the pioneers of the ones with their arrow arrows in their back but that hasn't really seem to impact this in a significant way while the spy has a few advantages one it it's not just that it was first it had established trading by naming today spy by doll waited volume is the most liquid equity security in the world that some his trades in there's some fun stats on this is traded at a penny widespread for twelve years to every day so they're doing the bidding the ask is one set one set in motion trading side of that aid trade five point five times more than apple in from one hundred million shares a day what sort of volume de due date a state turns over it can turnover once again that changes all through i'm but he can turn over 15 to 20 billion dollars in assets today well that's assam the ones that that i hear that i love i mean there's the outpost which good you take the next like eighteen etf combined t lodged etf combined mmhmm and they don't have the same pretty line while the this obviously go to liquidity product for marketplace is not just about a buying hall product this liquidity products used for as an alternative to futures a lot of different uses to it very flexible so it's fairly low cost what's the internal expense ratio treasury answers about night low chiluba nine basis points right is anybody even close to that amongst ets because he ets this is a broad range you could pay over hundred base points you could pay no basis points for a etf.

ets apple assam two hundred forty billion doll 20 billion dollars twelve years