|Bid||27.79 x 800|
|Ask||27.86 x 1100|
|Day's range||27.80 - 28.03|
|52-week range||25.35 - 28.67|
|Beta (3Y monthly)||0.15|
|PE ratio (TTM)||4.05|
|Forward dividend & yield||1.78 (6.30%)|
|1y target est||N/A|
(Bloomberg) -- When Brian Bejile joined Citigroup Inc.’s collateralized loan obligation unit 15 years ago, clients mainly placed their orders by phone.Not much has changed, even as the market for CLOs has ballooned to about $600 billion and regulators have grown concerned about its possible excesses. When investors auction off CLOs they own to other money managers, it’s still a largely manual process with the dealer that manages the sale collecting orders by phone or through chat rooms. A customer’s chance of actually winning a piece of a CLO auction is usually less than 10%, Bejile said.That’s why Citigroup, the largest underwriter for the leveraged loans bundled into bonds, is introducing an electronic platform for orders in the secondary market for CLOs. The move may transform auctions to let investors offload holdings faster. The goal is to fix a part of the market that isn’t functioning as well as it could, Bejile said.“If you look at time spent, versus the chance of actually getting what you want, it’s pretty low,” said Bejile, who’s now a managing director working on Citigroup’s loans and CLO trading platform. “It’s a frustrating process for investors and what ends up happening is that bonds sometimes don’t trade because buyers are fatigued.”The third-largest U.S. bank this month introduced the new application on Citi Velocity, the platform it uses to interact with institutional clients, for auctions known as “bid wanted in competition,” or BWICs. Since then, the bank has seen its market share of traded CLO securities grow significantly, said Matt Zhang, the bank’s global co-head of structured credit and securitized trading.“We’re going to change how existing and prospective investors can access, trade and analyze bonds in CLO and broader structured credit space going forward,” Zhang said.Issuance of collateralized loan obligations, bundles of loans made to junk-rated companies that get packaged into bonds of varying risk and return, has soared since the 2008 financial crisis. Investors are drawn to the fact that the securities performed relatively well during the last meltdown. Last year, sales hit a record $130 billion and have largely kept that pace into 2019.Regulators WatchingThat growth has alarmed some regulators. Federal Reserve Chairman Jerome Powell last month compared CLOs and leveraged loans to the pre-financial-crisis mortgage industry, and said that the Fed is watching closely. He added that the leveraged loan market doesn’t represent a current threat to the financial system. The Financial Stability Board is reviewing the global leveraged loan market, with a focus on CLOs, as part of its work to spot stress in the financial system.More than $60 billion of CLOs have been issued this year, slightly behind the $66.4 billion that had been issued at this point last year, according to data compiled by Bloomberg. CLO managers have taken steps like issuing shorter-term bonds to make their securities more attractive to investors this year.As the market has grown, secondary trading has remained relatively light. About $26.1 billion of CLOs traded last year through BWIC auctions, according to data from the bank’s research unit. That was a fraction of a single day’s trading of Treasuries in 2018, according to Securities Industry and Financial Markets Association data.“We’re pretty amazed how much inefficiency there still is given the technology today and there’s a lot we can do to compress those inefficiencies,” Zhang said. “We believe the best way to start that is organically from the bank, in house.”Startups, banks, and money managers have been trying for years to make more bond trading electronic. Progress has been slow. BlackRock Inc. found tepid support for its corporate bond trading platform because too many customers were looking to buy, and not enough wanted to sell. But a growing number of corporate bond trades are electronic.Citigroup’s electronic bidding platform is among the latest efforts by the bank’s Spread Products Investment Technologies - or Sprint - team, which it formed last year to invest in debt market technology. The group found its first company to fund in February when it backed Better Mortgage Corp., which works to speed up the process of getting a home loan.The bank is thinking about how to further profit from the new bidding platform, Zhang said. Citigroup is also hoping to add data and analysis from its research teams that sits alongside the bidding process, according to Katya Chupryna, a vice president in the Sprint group.“On the analysis side right now, you end up going to multiple places, you need separate data sources, and it’s really hard for who is trading to have a full picture,” Chupryna said. “Our long-term goal is to make the analytics part as transparent and user friendly as the trading part.”(Updates with issuance information in ninth paragraph.)\--With assistance from Charles Williams and Adam Tempkin.To contact the reporters on this story: Jenny Surane in New York at firstname.lastname@example.org;Sally Bakewell in New York at email@example.comTo contact the editors responsible for this story: Michael J. Moore at firstname.lastname@example.org, ;Natalie Harrison at email@example.com, Dan Wilchins, David ScheerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Citigroup Inc. is combining its foreign-exchange and rates businesses into a single unit, two months after Paco Ybarra took over as head of the institutional-clients group.Itay Tuchman will continue to lead the currencies business, while Deirdre Dunn and Pedro Goldbaum will co-lead the rates businesses. All three will report to Carey Lathrop and Andy Morton, who co-lead the firm’s markets and securities services business, the two said in an internal memo.The two units already share technology and corporate-sales teams and have overlapping products. By combining them, Citigroup is hoping to improve clients’ experience with the bank and boost earnings, Morton and Lathrop said in the memo.It’s the first sweeping change announced under Ybarra, who took over in April when President Jamie Forese announced he would leave the firm this summer. Ybarra was head of markets and securities services before his promotion.Here are other changes announced in the memo:Citigroup is looking for someone to take over as head of its North American markets and securities services division, a position most recently held by Dunn.Nadir Mahmud, who led foreign exchange and local markets, will assist in the transition and then work on strategy for Europe, the Middle East and Africa.The firm’s Group of 10 and local-markets treasury units will also combine into a single unit, led by Andy Thursfield.Flavio Figueiredo will lead corporate sales for the combined rates and currencies entity.Brian McCappin will lead foreign-exchange and local-market investor sales.Lionel Durix will continue to lead rates and currencies structuring.To contact the reporters on this story: Jenny Surane in New York at firstname.lastname@example.org;Donal Griffin in London at email@example.comTo contact the editors responsible for this story: Michael J. Moore at firstname.lastname@example.org, Steve Dickson, Daniel TaubFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Citigroup is merging its rates and currencies businesses, in the first restructuring under new investment bank boss Paco Ybarra. Citi announced the rejig on Monday in an internal memo signed by Carey Lathrop and Andy Morton, who took over running the markets division when Mr Ybarra became head of the investment bank earlier this year.
Are you worried your parents didn’t teach you enough about money? You’re not alone. Nearly one in four adults in the U.S. -- 24%, according to the study -- say their parents didn’t give them any sort of financial education growing up, according to a new report.
The Ministry of Finance ordered Citigroup Global Markets Japan Inc.’s exclusion from participating in “non-price competitive auctions” and certain other government bond sales for a month from June 13, it said in a statement Tuesday. The suspension comes days after the Financial Services Agency fined the firm 133 million yen ($1.2 million) and ordered it to improve internal controls for failing to detect instances of manipulation of the Japanese government bond market. Citigroup was found to have placed orders last October for JGB futures contracts without intending to execute them, a practice known as spoofing.
Citigroup was faring the worst among bank stocks on Friday. The third-largest U.S. bank by assets has a large Mexican subsidiary, Citibanamex.
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(C) shares (ticker: C) got a boost in Thursday trading from a Goldman Sachs upgrade. After taking a hit along with the rest of its banking peers in the last quarter of 2018, Citi shares have had a good start to the year, rising more than 23%, compared with about a 12% rise in the broader S&P 500 index. Investors haven’t yet priced in the possibility that the third-largest bank in the U.S. by deposits could actually hit a key financial goal next year, Goldman’s Richard Ramsden wrote in a note to clients Thursday morning.
Analyst Richard Ramsden said in a research note that he sees “a realistic path” to a 13% return on tangible common equity, or Rotce, in 2020, which would top market expectations by 100 basis points. “The market is overly pessimistic on Citigroup’s revenue growth inflection, targeted expense savings, and outlook for credit costs given the improvement in the risk profile of their international loan book,” he said. Citigroup’s ability to keep getting better in 2020 will likely become key for stock valuation in the coming months, he said.
UBS Group AG and Barclays Plc were also named in the suit lodged Monday in the Federal Court by Maurice Blackburn Lawyers. The action claims the banks colluded to rig foreign exchange rates, boosting profits at the expense of Australian businesses and investors, the law firm said in a statement. Spokespeople at Citi and JPMorgan in Sydney and Barclays in Hong Kong had no immediate comment on the suit.
Lyft users in New York and Jersey City can now rent a Citi Bike on the app. After some beta-testing with 20 percent of users, Lyft has now fully-integrated Citi Bike onto its mobile app. Lyft users won't need a Citi Bike account to locate or rent a bike. The announcement comes nearly a year after Lyft bought Motivate, the company that owns Citi Bike, in a bid to become an all-purpose transportation company with options for cars, bikes and electric scooters. Lyft already operates bike-sharing programs in Washington, DC and the San Francisco Bay Area, so app integration with those cities is likely forthcoming.
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Why Bank of America’s Q1 Results Didn't Lift Its StockWhat restricted the upside in stock? On April 16, Bank of America (BAC) announced mixed first-quarter results. The YoY (year-over-year) improvement in the net interest due to continued growth in