Money

Bank of America Says Buyers Pay Up for Top-Ranked ESG Firms

(Bloomberg) —



a large green field: Solar panels stand in an aerial photograph taken over the Enel Green Power Mexico Don Jose photovoltaic solar plant in San Luis de la Paz, Guanajuato state, Mexico, on Wednesday, Aug. 14, 2019. Energy reforms begun in 2013 opened the door to private investment and specifically promoted clean energy via competitive power auctions, but new plans to strengthen state control under Mexico's President Lopez Obrador, potentially at the expense of the private sector, are forcing a change of course.


© Bloomberg
Solar panels stand in an aerial photograph taken over the Enel Green Power Mexico Don Jose photovoltaic solar plant in San Luis de la Paz, Guanajuato state, Mexico, on Wednesday, Aug. 14, 2019. Energy reforms begun in 2013 opened the door to private investment and specifically promoted clean energy via competitive power auctions, but new plans to strengthen state control under Mexico’s President Lopez Obrador, potentially at the expense of the private sector, are forcing a change of course.

Stocks with high environmental, social and corporate governance scores have outperformed the broader market and traded at higher valuations this year, according to Bank of America Corp.

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During the first quarter’s selloff, S&P 500 members in the top quintile of ESG rankings beat the index by more than five percentage points, the lender said. Meanwhile, investors have also begun to pay less for stocks with

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Norway central bank says “considerable uncertainty” about NOK supply

OSLO (Reuters) – The Norwegian central bank said on Friday it will offer additional short-term loans to the country’s banks after considerable uncertainty arose about the supply of the crown currency in recent weeks.

Liquidity had been unevenly distributed between banks, Norges Bank said, and it will now seek to strengthen banks’ incentives to lend to each other as a way to boost the interbank market.

As a result of the imbalance, money market rates have recently risen, analysts said.

The Norwegian currency initially weakened on the news, hitting a four-and-a-half month low against the euro before a partial rebound.

Norges Bank data showed that those banks which had ample liquidity on a some occasions had chosen to deposit it with the central bank at negative rates rather than lending to other banks, DNB Markets analyst Kyrre Aamdal said.

“This indicates a problem in the redistribution of liquidity,” Amdal said.

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Here are 3-year bank fixed deposits that offer up to 7.65% for senior citizens



a close up of text on a white background: Here are 3-year bank fixed deposits that offer up to 7.65% for senior citizens


© Ruchira Kondepudi
Here are 3-year bank fixed deposits that offer up to 7.65% for senior citizens

Most senior citizens prefer investing in bank fixed deposits (FDs) to earn a regular monthly income after retirement. However, falling bank deposit rates have reduced their monthly income sharply in the last one year or so. This is because the Reserve Bank of India (RBI) has steadily cut repo rates. Banks have followed the same trajectory and gradually reduced the interest rates on fixed deposits across the tenures. The interest rate on small-saving schemes too have been cut in recent quarters.

Despite falling interest rates, there are still some banks that offer attractive rates on three-year FDs for senior citizens. Not surprisingly, the smaller private banks tend to top the rate chart on fixed deposits, given the competition they face in garnering deposits.

Higher rates offered by smaller private banks

Smaller private banks

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Analyzing Bank of America’s Unusual Options Activity

Bank of America
BAC,
+0.64%

shares experienced unusual options activity on Friday. The stock price moved up to $23.35 following the option alert.

Exceptionally large volume (compared to historical averages) is one reason for which options market activity can be considered unusual. The volume of options activity refers to the number of contracts traded over a given time period. Open interest is the number of unsettled contracts that have been traded but not yet closed by either counterparty. In other words, open interest represents the quantity of contracts that individual parties have written but not yet found a counterparty for (i.e. a buyer finding a seller, or a seller finding a buyer).

Another indicator of unusual options activity is the trading of a contract with an expiration date in the distant future. Additional time until a contract expires generally increases the potential for it to grow its time value and

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Helicopter money from the Bank of Canada is a bad idea



Some say the Bank of Canada should “go direct” and deliver money directly to households as transfers.


© Provided by Financial Post
Some say the Bank of Canada should “go direct” and deliver money directly to households as transfers.

Looking for more tools that the Bank of Canada can use to help our COVID-stricken economy recover, some observers argue for “going direct,” having the Bank of Canada “print money” and deliver it directly to households as transfers. In our view, that is a bad idea.

Broadly speaking, the Bank of Canada can “go direct” in two ways. One is to transfer extra funds directly to the general public — a technique often described as a “helicopter drop.” Imagine squadrons of helicopters flying over the country dropping cash out their loading bays. In fact, neither helicopters nor, for the most part, cash would be involved: rather, the Bank of Canada would send people cheques or make direct deposits into their bank accounts — a one-for-one, dollar-for-dollar combination of

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Yes Bank shares fall 2%; Kotak reinstates coverage with a sell call



a screen shot of a computer: Yes Bank shares fall 2%; Kotak reinstates coverage with a sell call


© Nishant Kumar
Yes Bank shares fall 2%; Kotak reinstates coverage with a sell call

Shares of Yes Bank fell over 2 percent in intraday trade on BSE on September 16 and looked on course to extend the losses into the second consecutive session.

Brokerage firm Kotak Institutional Equities has a ‘sell’ call on the stock with a target price of Rs 10.

“We reinstate coverage on Yes Bank with a sell rating and fair value of Rs 10. The bank has stabilised its key business operations and is on the path to recovery. However, this recovery is unlikely to be easy as the bank has the challenging task of rebuilding confidence and deliver RoE through an asset mix where competence is untested,” Kotak said.

As per the brokerage, execution risk leading to a delayed recovery in return ratios is high while valuations leave limited room for disappointment.

“At our

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No resolution in sight yet



a group of people walking on a city street: PMC Bank crisis one year on: No resolution in sight yet


© Dinesh Unnikrishnan
PMC Bank crisis one year on: No resolution in sight yet

A year after the Reserve Bank of India (RBI) superseded the board of Mumbai-based Punjab and Maharashtra Co-operative (PMC) Bank after discovering major financial irregularities and fraud, the RBI-appointed administrator is yet to succeed in finding a resolution plan for the bank.

According to a Reuters report, the administrator has approached major banks with a merger request, the bank’s administrator said in a Sept. 10 filing at the Delhi High Court, without identifying the banks or giving other details.

This is even as the efforts to recover money from HDIL is still halfway. On September 16, Mumbai Mirror reported that PMC Bank didn’t find any takers during the auction of two airplanes and a yacht owned by HDIL Group promoters. These assets together valued at Rs 350 crore, the report said.

HDIL has denied any wrongdoing

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Hedge Fund Inside Biggest Norway Bank Reveals Junk Bond Bet

(Bloomberg) — Inside the biggest bank in Norway, a hedge fund is going over the bond issuers that lost their investment-grade status during the Covid crisis.



a tall building in a city: Lights illuminate the windows of the DNB ASA headquarters in Oslo, Norway, on Friday, Nov. 2, 2018.


© Bloomberg
Lights illuminate the windows of the DNB ASA headquarters in Oslo, Norway, on Friday, Nov. 2, 2018.

One of the strategies at DNB ASA’s Multi Asset fund is to identify so-called fallen angels and place bets on those that appear to have been unfairly demoted to high yield earlier this year.

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“It’s a strategy that picks up risk premia in the fallen angels segment,” Anette Hjerto, who runs the fund from Oslo, said in an interview. “There will be good opportunities going forward after what has happened during the corona pandemic.”

The 17.5 milllion-euro ($21 million) fund employs eight strategies managed by different teams at DNB Asset Management, including equity long-short and fixed income. Its high-yield strategy returned 10.8% through

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Fifth Third Bank Helps Customers Pay Down $5 Million in Student Loan Debt

The MarketWatch News Department was not involved in the creation of this content.

Fifth Third MomentumTM recently hit a milestone: It now has helped customers pay down $5 million in student loan debt. The Fifth Third Momentum app, which launched three years ago, allows customers to round up their debit card purchases to apply to a student loan.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200915005836/en/

“We’re proud to play a role in helping families find solutions for student loans,” said Melissa Stevens, chief digital officer for Fifth Third Bank. “Even in times of hardship due to the pandemic, we want to help our customers continue to work toward a goal we know causes a lot of stress, especially for our Millennial customers.”

Fifth Third Momentum allows users either to round up debit card purchases to the next dollar or to add $1 to every purchase.

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Lakshmi Vilas Bank share price rallies 10% on completion of due diligence for Clix group merger



a sign above a store


© Provided by The Financial Express


Lakshmi Vilas Bank share price was locked in 10 per cent upper circuit at Rs 22.35 apiece on BSE after the bank informed that the mutual due diligence for the merger with Clix Group was substantially complete. The bank informed that under the non-binding letter of intent (LOI), the proposed amalgamation of Clix Group with Lakshmi Vilas Bank is subject to completion of mutual due-diligence, regulatory and other customary approvals. “The mutual due diligence is substantially complete, and the parties are in discussions on the next steps,” it said. In a span of five and a half months, Lakshmi Vilas Bank shares have rallied 114 per cent from Rs 10.45 per share.

Earlier this month, the cash-starved bank announced plans to raise up to Rs 1,500 crore to fund business growth and increase foreign shareholding to up to 74 per cent. The bank said

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