Monday, October 01, 2007
Citi Bank has a 60% earnings drop despite record Muni Sales
By Anastasija Johnson
NEW YORK, Oct 1 (Reuters) - U.S. municipal bond issuance rose 21 percent in the first nine months of this year to $320 billion as both new money and refunding sales increased, Thomson Financial said on Monday.
This issuance was the strongest year-to-date municipal bond volume since $308.9 billion recorded at the end of the third quarter of 2005, Thomson said in a report.
Tax-exempt bond sales hit an all-time high of $408 billion in 2005 as state and local governments rushed to refinance their outstanding debt at lower interest rates.
If the current growth rate persists, municipal bond issuance could break that record.
"Assuming the next three months show volume at the same rate, 2007 will finish at $419 billion," research firm Municipal Market Advisors said in a report...
Citigroup (C.N: Quote, Profile, Research) remained first $45 billion in sales year-to-date, Thomson said. Merrill Lynch (MER.N: Quote, Profile, Research) was second with $38.6 billion, followed by UBS Securities LLC (UBSN.VX: Quote, Profile, Research), which senior managed $26.8 billion of muni deals year-to-date.
IN OTHER NEWS TODAY
By Mark McSherry
NEW YORK, Oct 1 (Reuters) - The warning from Citigroup Inc (C.N: Quote, Profile, Research) on Monday that its quarterly earnings will drop 60 percent could be a sign of things to come from U.S. banks and brokerages.
Citigroup blamed its troubles on $5.9 billion in losses and write-downs from subprime and leveraged loan difficulties, fixed income trading, and weakness in its consumer business.
The warning from the largest U.S. bank by market value came on the same day that Swiss bank UBS AG (UBSN.VX: Quote, Profile, Research) disclosed $3.4 billion in losses, driven by some of the same factors.
Also on Monday, UBS's chief domestic rival Credit Suisse Group (CSGN.VX: Quote, Profile, Research) said its third quarter results would be hurt by market turmoil as the credit crisis struck at the heart of the global financial industry.
Analysts said a number of other banks are likely to issue similar profit warnings.
Interesting. The largest bond trader blames poor trading pratices of fix income as a part of its problem. In other words the most experienced bond trader miss judge the direction rates would go. Maybe the Federal reserve should instead of trying to bail out the banks with reckless and meaningless cuts, they should instead help educate them on the direction long term rates will go because of the economics of our world economy. Once upon a time bankers were economist. now that they are nothing more than salesmen they are going to need to be eductate with strong words from the Federal Reserve.
NEW YORK, Oct 1 (Reuters) - U.S. municipal bond issuance rose 21 percent in the first nine months of this year to $320 billion as both new money and refunding sales increased, Thomson Financial said on Monday.
This issuance was the strongest year-to-date municipal bond volume since $308.9 billion recorded at the end of the third quarter of 2005, Thomson said in a report.
Tax-exempt bond sales hit an all-time high of $408 billion in 2005 as state and local governments rushed to refinance their outstanding debt at lower interest rates.
If the current growth rate persists, municipal bond issuance could break that record.
"Assuming the next three months show volume at the same rate, 2007 will finish at $419 billion," research firm Municipal Market Advisors said in a report...
Citigroup (C.N: Quote, Profile, Research) remained first $45 billion in sales year-to-date, Thomson said. Merrill Lynch (MER.N: Quote, Profile, Research) was second with $38.6 billion, followed by UBS Securities LLC (UBSN.VX: Quote, Profile, Research), which senior managed $26.8 billion of muni deals year-to-date.
IN OTHER NEWS TODAY
By Mark McSherry
NEW YORK, Oct 1 (Reuters) - The warning from Citigroup Inc (C.N: Quote, Profile, Research) on Monday that its quarterly earnings will drop 60 percent could be a sign of things to come from U.S. banks and brokerages.
Citigroup blamed its troubles on $5.9 billion in losses and write-downs from subprime and leveraged loan difficulties, fixed income trading, and weakness in its consumer business.
The warning from the largest U.S. bank by market value came on the same day that Swiss bank UBS AG (UBSN.VX: Quote, Profile, Research) disclosed $3.4 billion in losses, driven by some of the same factors.
Also on Monday, UBS's chief domestic rival Credit Suisse Group (CSGN.VX: Quote, Profile, Research) said its third quarter results would be hurt by market turmoil as the credit crisis struck at the heart of the global financial industry.
Analysts said a number of other banks are likely to issue similar profit warnings.
Interesting. The largest bond trader blames poor trading pratices of fix income as a part of its problem. In other words the most experienced bond trader miss judge the direction rates would go. Maybe the Federal reserve should instead of trying to bail out the banks with reckless and meaningless cuts, they should instead help educate them on the direction long term rates will go because of the economics of our world economy. Once upon a time bankers were economist. now that they are nothing more than salesmen they are going to need to be eductate with strong words from the Federal Reserve.
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