BMO - Bank of Montreal

NYSE - NYSE Delayed Price. Currency in USD
49.31
-1.02 (-2.03%)
At close: 4:00PM EDT
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  • Short Term
    2W - 6W
  • Mid Term
    6W - 9M
  • Long Term
    9M+
Previous Close50.33
Open49.62
Bid49.34 x 1200
Ask49.99 x 1200
Day's Range48.87 - 50.07
52 Week Range38.31 - 79.93
Volume1,051,114
Avg. Volume1,234,450
Market Cap31.61B
Beta (5Y Monthly)1.02
PE Ratio (TTM)8.03
EPS (TTM)6.14
Earnings DateN/A
Forward Dividend & Yield3.03 (6.03%)
Ex-Dividend DateJul 31, 2020
1y Target Est85.95
Fair Value is the appropriate price for the shares of a company, based on its earnings and growth rate also interpreted as when P/E Ratio = Growth Rate. Estimated return represents the projected annual return you might expect after purchasing shares in the company and holding them over the default time horizon of 5 years, based on the EPS growth rate that we have projected.
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  • BMO Financial Group signs IFC led Operating Principles for Impact Management
    CNW Group

    BMO Financial Group signs IFC led Operating Principles for Impact Management

    BMO Financial Group signs IFC led Operating Principles for Impact Management

  • CNW Group

    Kids Help Phone Never Dance Alone-a-thon powered by BMO in Support of Youth in Canada

    TORONTO , May 28, 2020 /CNW/ - Kids Help Phone's annual Walk so Kids Can Talk presented by BMO is back for another year, this time with a twist. The new virtual Never Dance Alone-a-thon powered by BMO will take place across Canada this Sunday, May 31 st, to encourage fundraising and spread awareness about the importance of supporting young people through an especially distressing and uncertain time. Since early March, Kids Help Phone has experienced a record surge in demand from youth experiencing stress and anxiety as a result of COVID-19.

  • Bloomberg

    BMO’s $130 Million Trading Loss Shows Pain From Notes, Hedging

    (Bloomberg) -- Bank of Montreal had about C$180 million ($130 million) in trading losses on a single day in March, a sign of just how risky stocks were as the coronavirus outbreak became a global pandemic.The loss, disclosed Wednesday in a quarterly presentation, marks the company’s worst trading day in more than a decade.“On that day, there was significant volatility in the market related to both equity levels, volatility levels and relationships that exist between different reference spots in the market,” Chief Financial Officer Tom Flynn said in an interview Wednesday.Two-thirds of the trading losses on that day were tied to the firm’s equity-linked note-related business, according to Flynn. The business sells notes to investors that give them returns linked to equities. The other third of the day’s trading losses were from hedging around Bank of Montreal’s derivative book, he said.In the quarter ended April 30, Bank of Montreal’s trading revenue fell 35% to C$321 million, with its equities business showing a C$137 million loss for the three-month period. Among Canadian banks that have reported fiscal second-quarter results so far, Bank of Montreal is the only one with a decline in trading revenue for the period.The company, in its presentation Wednesday, offered an explanation: “In March, markets experienced unprecedented asset price declines, record volatility, extreme liquidity challenges and dislocations, and significant widening of corporate bond spreads. Given certain trading activities and positions, we experienced negative trading revenue during the most volatile days.”Flynn described the quarter’s trading results as “mixed” with “strong results” in fixed-income, currencies and commodities. For equities, he said, it was a “tougher quarter.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bank of Montreal (BMO) Q2 2020 Earnings Call Transcript
    Motley Fool

    Bank of Montreal (BMO) Q2 2020 Earnings Call Transcript

    Image source: The Motley Fool. Bank of Montreal (NYSE: BMO)Q2 2020 Earnings CallMay 27, 2020, 7:15 a.m. ETContents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: OperatorGood morning and welcome to the BMO Financial Group Q2 2020 Earnings Release and Conference Call for May 27th, 2020.

  • Canada's RBC, BMO offer subdued outlook, miss profit estimates as bad loan provisions surge
    Reuters

    Canada's RBC, BMO offer subdued outlook, miss profit estimates as bad loan provisions surge

    Royal Bank of Canada and Bank of Montreal on Wednesday offered subdued outlooks after missing quarterly earnings expectations as they increased provisions more than six-fold to cover future loan losses due to the COVID-19 outbreak. While much of the spikes in provisions were for performing loans, they nevertheless point to banks' expectations for a surge in loan losses due to the pandemic. On Tuesday, Bank of Nova Scotia and National Bank of Canada also reported steep declines in profits.

  • Bank of Montreal (BMO) Q2 Earnings and Revenues Miss Estimates
    Zacks

    Bank of Montreal (BMO) Q2 Earnings and Revenues Miss Estimates

    Bank of Montreal (BMO) delivered earnings and revenue surprises of -19.15% and -8.43%, respectively, for the quarter ended April 2020. Do the numbers hold clues to what lies ahead for the stock?

  • Reuters

    WRAPUP 2-Canada's RBC, BMO offer subdued outlook, miss profit estimates as bad loan provisions surge

    Royal Bank of Canada and Bank of Montreal on Wednesday offered subdued outlooks after missing quarterly earnings expectations as they increased provisions more than six-fold to cover future loan losses due to the COVID-19 outbreak. While much of the spikes in provisions were for performing loans, they nevertheless point to banks' expectations for a surge in loan losses due to the pandemic. On Tuesday, Bank of Nova Scotia and National Bank of Canada also reported steep declines in profits.

  • PR Newswire

    BMO Financial Group Declares Dividends

    Bank of Montreal (TSX:BMO) (NYSE:BMO) today announced that its Board of Directors declared a quarterly dividend of $1.06 per share on paid-up common shares of Bank of Montreal for the third quarter of fiscal year 2020 ("Q3 2020 Dividend"), unchanged from the previous quarter and up 3 per cent from the prior year.

  • PR Newswire

    BMO Financial Group Reports Second Quarter 2020 Results

    For the second quarter ended April 30, 2020, BMO Financial Group (TSX: BMO) (NYSE: BMO) recorded net income of $689 million or $1.00 per share on a reported basis, and net income of $715 million or $1.04 per share on an adjusted basis.

  • Bank of Montreal Sets Aside $813 Million for Soured Loans
    Bloomberg

    Bank of Montreal Sets Aside $813 Million for Soured Loans

    (Bloomberg) -- Bank of Montreal followed other Canadian lenders in building up reserves for loan losses to brace for the aftershocks from plunging oil prices and a pandemic that’s caused a near economic standstill.Bank of Montreal, which has consumer-banking operations in Canada and the U.S., set aside a record C$1.12 billion ($813 million) in loan-loss provisions in the fiscal second quarter. The Toronto-based lender joins Bank of Nova Scotia and National Bank of Canada in posting a surge in provisions, which eroded earnings in results for Bank of Montreal that missed analysts’ estimates.Key InsightsBanks in Canada are trying to get ahead of soured loans they expect to result from the double-whammy of low oil prices sideswiping the energy industry and pandemic-spurred lockdowns that shuttered businesses, leading to record unemployment. Bank of Montreal’s provisions as a percentage of average net loans was 0.94% in the quarter, triple the portion in the first quarter and up from 0.16% a year earlier.Canadian banking is the lender’s largest division and typically accounts for most of its loan-loss provisions. The domestic retail bank posted C$361 million of profit in the quarter, down 41% from a year earlier on a surge in provisions.Chief Executive Officer Darryl White has pushed for more growth from the U.S. banking division, which includes Chicago-based BMO Harris Bank. Earnings from the U.S. personal and commercial division fell 17% to C$339 million from a year earlier.Market volatility in the early days of Covid-19 had been a boon for banks’ capital-markets divisions thanks to heavy trading, countering some of the pandemic’s pain. That volatility failed to help Bank of Montreal. The company’s BMO Capital Markets unit posted a C$74 million loss in the quarter, compared with a C$250 million profit a year earlier, as trading revenue and investment banking fees fell.Market ReactionBank of Montreal shares have fallen 30% this year through Tuesday, compared with a 20% decline for Canada’s eight-company S&P/TSX Commercial Banks Index.Get MoreSecond-quarter net income fell 54% to C$689 million, or C$1 a share, from C$1.5 billion, or C$2.26 a share, a year earlier. Adjusted per-share earnings totaled C$1.04 a share, missing the C$1.27 average estimate of 12 analysts in a Bloomberg survey.Read more about Bank of Montreal’s quarterly results here.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bank of Montreal profit misses mark as credit losses loom
    Reuters

    Bank of Montreal profit misses mark as credit losses loom

    Canadian banks are expecting to book higher loan losses this year and the next as the COVID-19 pandemic ravages economies and household incomes. Bank of Nova Scotia <BNS.TO> kicked off bank earnings for the first quarter on Tuesday and revealed that credit provisions more than doubled to C$1.85 billion from a year earlier, highlighting the damage from the pandemic.

  • Reuters

    Bank of Montreal profit slumps as credit losses loom

    Bank of Montreal reported a drop of more than 50% in quarterly profit on Wednesday as it set aside more money to cover potential loan losses from the coronavirus pandemic. Bank of Montreal set aside C$1.12 billion for future loan losses, vastly higher than C$176 million a year earlier.

  • ACCESSWIRE

    Bank of Montreal to Host Earnings Call

    NEW YORK, NY / ACCESSWIRE / May 27, 2020 / Bank of Montreal (NYSE:BMO) will be discussing their earnings results in their 2020 Second Quarter Earnings call to be held on May 27, 2020 at 7:15 AM Eastern ...

  • Oil Volatility Has Driven Demand In The Only 3X US Oil Exchange Traded Products
    Benzinga

    Oil Volatility Has Driven Demand In The Only 3X US Oil Exchange Traded Products

    With global supply at all-time highs and demand at record lows, the world's most valuable commodity is at an economic crossroads.Let's take a look at the West Texas Intermediate (WTI) front-month futures contract, which represents the price for future delivery of a barrel of WTI crude oil. On the one hand, the price of this contract has rebounded sharply from its sub-zero low in April 2020. On the other hand, due to COVID-19, the stay-at-home orders mandated by many countries, and the uncertain economic outlook, there continue to be concerns that the decline of this contract into negative prices may repeat itself in the future.Either way, traders are taking sides.Many bullish traders have turned their attention to the MicroSectors U.S. Big Oil Index 3X Leveraged ETN (NYSE: NRGU), a leveraged exchange traded note that attempts to deliver 300% of the daily performance of the Solactive MicroSectors™ U.S. Big Oil Index.On the bearish side, traders have pursued the MicroSectors U.S. Big Oil Index -3X Leveraged ETN (NYSE: NRGD). NRGD attempts to deliver -300% of the inverse daily performance of the same index.Major Volume SpikesBoth ETNs have seen dramatic increases in trading volume in recent weeks, relative to their historical trading volume, which is likely the result of a few factors. First, NRGU and NRGD are the only 3x leveraged and -3x inverse leveraged, respectively, exchange traded products with exposure to the U.S. energy sector listed in the U.S. With crude oil futures experiencing unprecedented levels of volatility, traders may have increased their use of the daily leverage provided by the ETNs to place bullish and bearish bets on companies that operate in this sector.The index that both ETNs track could also be a factor. The Solactive MicroSectors™ U.S. Big Oil Index is equal-weighted and designed to provide exposure to the 10 largest U.S.-listed oil stocks. That exposure to only the largest names in the sector has led to a relative outperformance compared to more diversified market measures (see graph, below) when crude oil futures turned negative, and could be one reason why traders and investors have flocked towards the relative "safety" of the most well-capitalized oil companies when seeking exposure to the positive performance of the sector.Source: Bloomberg. The Bloomberg WTI Crude Oil Subindex Total Return measures the performance of the futures contract on WTI crude oil. Data as of May 15, 2020As of the end of April, the index was comprised of Exxon Mobil Corporation (NYSE: XOM), Chevron Corporation (NYSE: CVX), EOG Resources Inc. (NYSE: EOG), Occidental Petroleum Corporation (NYSE: OXY), ConocoPhillips (NYSE: COP), Marathon Petroleum (NYSE: MPC), Phillips 66 (NYSE: PSX), Valero Energy Corporation (NYSE: VLO), Pioneer Natural Resources (NYSE: PXD), and Hess Corp. (NYSE: HES).As a testament to the rising demand in the oil trade, and NRGU specifically, Bank of Montreal upsized NRGU several times since March 30, by a total of 16 million notes. The exchange traded notes are subject to the credit risk of Bank of Montreal, the issuer of the ETNs. The ETNs are also subject to the issuer's credit ratings, and the issuer's credit spreads may adversely affect the market value of the notes.Please note that leveraged, inverse and inverse leveraged ETNs seek a return on the underlying index for a single day. Those investments are not "buy and hold" investments, and should not be expected to provide the respective return of the underlying index's cumulative return for periods greater than a day. The investments are intended to be daily trading tools for sophisticated investors to manage daily trading risks as part of an overall diversified portfolio. They are designed to achieve their stated investment objectives only on a daily basis. Leveraged investments include risk and are not suitable for all investors. Please read the disclosure documents, including the relevant pricing supplements, for information.Bank of Montreal, the issuer of the ETNs, has filed a registration statement (including pricing supplements, a prospectus supplement and a prospectus) with the Securities and Exchange Commission (the "SEC") about the ETNs that are being offered by this free writing prospectus. Please read those documents and the other documents relating to these offerings that Bank of Montreal has filed with the SEC for more complete information about Bank of Montreal and these offerings. These documents may be obtained without cost by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Bank of Montreal, any agent or any dealer participating in these offerings will arrange to send the applicable documents if so requested by calling toll-free at 1-877-369-5412.Photo credit: LOC, Carol M. HighsmithSee more from Benzinga * Watch Benzinga CEO's 'Crazy' XpresSpa Stock Pick Play Out In Real-Time: Video * These Were The Most Active Securities On OTC Markets In April * Australian Mining And Technology Metals Companies Set To Take Stage At Investor Conference(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • CNW Group

    BMO Creates Dedicated Online Resource Hubs for Canadians

    BMO Creates Dedicated Online Resource Hubs for Canadians

  • Reuters

    Trudeau asks bank CEOs for views on economy, COVID-19 relief- Globe and Mail

    Canadian Prime Minister Justin Trudeau has spoken to the heads of the country's six big banks to get their views on the state of the economy and the COVID-19 relief efforts, the Globe and Mail reported on Sunday, citing multiple sources. This was Trudeau's first one-on-one dialogue with the CEOs since the beginning of the coronavirus outbreak, according to the report, which added that the calls took place around the Victoria Day long weekend. The topics covered included adjustments required in relief efforts rolled out by the government, need for further support and pressures faced by clients of the banks, the report said, adding that the talks were 'high-level check-ins rather than deep policy discussions'.

  • CNW Group

    BMO Investments Inc. Announces Risk Rating Changes, Changes to BMO LifeStage Plus 2030 Fund, New Funds and Series and Discontinues Low Load Deferred Sales Charge Purchase Option

    BMO Investments Inc. Announces Risk Rating Changes, Changes to BMO LifeStage Plus 2030 Fund, New Funds and Series and Discontinues Low Load Deferred Sales Charge Purchase Option

  • Bloomberg

    Metals Can Leap Over the Oil Slick

    (Bloomberg Opinion) -- After 2008, metals and oil rebounded together from the depths of the financial crisis, as China’s consumption of raw materials took off. This time, their recoveries may look quite different.Crude faces a lengthy convalescence from the catastrophic lows of April, when U.S. oil plunged into negative territory. Industrial metal prices have fallen far less, and look healthier: Closures to control the spread of coronavirus in countries like Peru have squeezed production, just as China is gearing up. Add in Beijing’s infrastructure plans, expected to be outlined at the National People’s Congress meeting starting Friday, plus the prospect of green stimulus and more mineral-intensive clean energy, and the outlook looks rosier still.Copper is indicative of these divergent paths. Out of other metals, Bloomberg Intelligence reckons it has moved most closely with oil over 160 years — a coefficient of 0.96 over that time. The link is beginning to weaken, and the current crisis will only make that more pronounced.Why so?Oil has certainly made an impressive comeback over the past few weeks: Many producers are still losing money, but West Texas Intermediate is back above $30, and there was no repeat of April’s crash when the contract rolled over this week. Brent crude is up almost 90% after last month dropping below $20. That’s because the supply glut has shrunk, thanks to the end of Russia’s price war with Saudi Arabia and significant involuntary shutdowns among U.S. producers, easing concerns about global storage capacity. That’s helpful, even if improving prices could bring back some shale activity.Metals have also taken a hit to output from coronavirus lockdowns in Latin America and elsewhere. In late April, BMO analysts estimated these affected 23% of global capacity for copper, 15% for nickel and 24% for zinc. Projects like Anglo American Plc’s Quellaveco in Peru, where workers downed tools, could see delays. That’s helped copper to rise back toward a modest $5,500 per metric ton.Supply reductions aren’t enough to make a difference without better demand, though, and that’s where the divergence becomes clearer. China tells part of the story. Construction activity and manufacturing are on the mend, drawing down metal inventories. It’s true that oil consumption is reviving, too: China’s taxis, buses and cars have been back at normal levels since early April, and traffic congestion has returned. But while that’s good news for gasoline and local refiners, it’s hardly salvation for global oil. Recoveries elsewhere are progressing more slowly and most of the world’s aircraft are still grounded. Simply put, China’s recovery matters more for metals, with the country accounting for roughly half of global consumption. By comparison, it makes up less than 14% of oil demand.Now consider the cautious nature of Beijing’s economic reboot, which is a signal for other countries, and the bumps along the post-pandemic road to recovery. These make the picture darker for oil. Factories might keep producing washing machines, but more of us will stay away from leisure travel and work from home if incidents like the reappearance of the virus in China’s northeast repeat themselves. It’s not even clear that an aversion to the risks of public transport will get us back in our cars again, as my colleague David Fickling has pointed out. Demand for personal protective equipment like masks is hardly enough to offset a drop in gasoline and even jet fuel, which past experience suggests will take years to recover.The NPC is expected to include a revived version of past efforts to develop the country’s western hinterland, alongside other stimulus efforts. No one anticipates a boost akin to what was seen in 2008. Even a similar amount would probably have a weaker multiplier effect — yet the boost will matter for copper, zinc and more. And that’s before the wider green fiscal push, in and outside China, that favors mined materials needed for batteries, grids and energy storage. The solar industry in Asia-Pacific alone is expected to use around 378,000 tons of copper by 2027, almost double 2018 levels.Mark Lewis, global head of sustainability research at BNP Paribas Asset Management, splits the long-term pressures in three: the world’s push toward reducing carbon emissions, cheap renewable energy and air pollution, highlighted by the clear blue skies of recent weeks. Add in the behavioral changes brought by the pandemic and the future of oil is more uncertain than ever, he argues. With even Royal Dutch Shell Plc arguing that peak oil demand will come sooner than expected, it’s hard to disagree.There may not be a uniform global green stimulus, and some ambitions will remain just that. Yet a World Bank report last week gives an indication of the potential growth story: It says the goal of limiting the global temperature rise to 2 degrees Celsius will require production of graphite, lithium, and cobalt to ramp up by more than 450% by 2050, compared with 2018, in order to meet energy storage requirements. Aluminum and copper, used across technologies, will also be in demand. And that’s excluding infrastructure like transmission lines.In the future we’ll still need oil. We just might need metals more.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Clara Ferreira Marques is a Bloomberg Opinion columnist covering commodities and environmental, social and governance issues. Previously, she was an associate editor for Reuters Breakingviews, and editor and correspondent for Reuters in Singapore, India, the U.K., Italy and Russia.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • CNW Group

    Another Digital First: BMO Introduces Credit Card PIN Reset Feature

    TORONTO , May 21, 2020 /CNW/ - To help customers bank remotely with confidence,  BMO has introduced the ability to reset or change a MasterCard PIN via online or mobile banking. As well – as remote banking capabilities become increasingly important – the bank has also introduced a suite of credit card self-service capabilities over the last several months. Credit Card PIN Reset: In a first for a major Canadian financial institution, customers now have the ability to quickly and securely reset or change the PIN on their BMO MasterCard via online or mobile banking.

  • Bloomberg

    First 20-Year Treasury Auction Validates Mnuchin’s Patience

    (Bloomberg Opinion) -- A 20-year U.S. Treasury bond isn’t a curiosity anymore.The federal government’s first 20-year bond auction since 1986 is in the books, and it was a solid, if unspectacular, debut for the maturity. That should be music to Treasury Secretary Steven Mnuchin’s ears.Perhaps the most clear-cut gauge of a Treasury offering is its yield relative to expectations. The 20-year bonds drew a yield of 1.220%, slightly higher than the 1.213% yield that traders were indicating before the sale but much lower than the 1.27% derived from Bloomberg’s relative value spline curves. BMO Capital Markets strategists noted before the sale that the 20-year part of the curve had cheapened relative to the 10-year and 30-year portions, suggesting “an incremental yield pick up in the early days of the new bond as a concession for what will initially be a comparably thinner volume profile.”Judging by Wednesday’s auction, there should be no shortage of future demand. The bid-to-cover ratio, which measures how many times investor interest covered the $20 billion auction size, was a solid 2.53. While there’s obviously no previous 20-year sale for comparison, the figure is in line with last week’s 10-year and 30-year offerings, which came in at 2.69 and 2.3, respectively. Primary dealers, which are obligated to bid, were left with a relatively high 24.6% share, more than they had to take at the 10-year and 30-year sales. Jim Vogel at FHN Financial saw that as a sign “markets always shun the new kid,” though acknowledged this new maturity did somewhat better than the three-year and seven-year tenors before it. Indeed, longer-dated Treasuries rallied after the sale.A number of technical reasons explain why strategists widely expected this auction to go off without a hitch. For one, the 20-year bonds are deliverable into the classic bond futures contract, creating a base level of demand. Bloomberg News’s Elizabeth Stanton broke down how this enabled traders to ballpark the yield on the debt even without any directly comparable existing securities. Also working in its favor: Currency-hedged yields for Japanese investors are the highest since October 2018 for longer-dated Treasuries, as I noted in a column earlier this month. Even for domestic buyers, yields are at the high end of the range that has held since late March. And, of course, when push comes to shove, the Federal Reserve can buy up to 70% of any issue, though it has been scaling back its purchases.At a higher level, though, this auction validates Mnuchin's patience in bringing a new maturity to market. I’ve covered the ups and downs of his ultra-long bond proposal since he was chosen as Treasury Secretary in late 2016. He could have been rash and demanded 50- or even 100-year bonds to leave his mark — in May 2017, he said those kinds of maturities “could absolutely make sense for us at Treasury.” Instead, he prudently stayed true to the department’s mission of predictable, regular issuance at the lowest cost to taxpayers. That meant keeping a new offering within the existing yield curve, even if that was viewed as ultra-safe.Treasury revealed that it would move ahead with the 20-year bond in mid-January, well before the coronavirus was even on the radar as a serious risk to the U.S. economy. At the time, some analysts were skeptical of the decision, saying it’s little more than “a feather to put in your cap.”With the benefit of hindsight, and now months into the Covid-19 crisis, the decision only looks smarter. The U.S. budget deficit is approaching $4 trillion and could be even higher. The initial size of the 20-year bond surprised some traders earlier this month, who were expecting more like $12 billion to $14 billion, but today’s auction proved it’s hardly too big to cause any sort of market indigestion. By contrast, a novelty offering like a 100-year bond would have had to be much smaller than $20 billion at first, and tougher to reliably ramp up. It seems reasonable to expect that 20-year sales could gradually grow with the rest of the auction slate in the quarters to come, given that it’s the smallest of any tenor. In all likelihood, this is the final exciting moment for 20-year U.S. bonds. Going forward, these auctions will be routine, familiar, unremarkable. In other words, just what the Treasury wants to see.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • CNW Group

    BMO Global Asset Management Announces Cash Distributions for Certain BMO Exchange Traded Funds

    BMO Global Asset Management Announces Cash Distributions for Certain BMO Exchange Traded Funds

  • Big Banks: Playing A Rebound Within The Financial Sector
    Benzinga

    Big Banks: Playing A Rebound Within The Financial Sector

    The financial stocks have been hit hard since the market selloff began in February, as the economic realities of the COVID-19 pandemic began to set in. Although all 11 S&P Select Sector Indices have rebounded from their March lows, the Financial Select Sector Index is down 31.13% in 2020 (as of May 15), making it the second-worst performing index of the group. In their most recent earnings reports, the largest banks in the U.S. outlined their loan loss provisions. According to Bloomberg, combined, JP Morgan, Wells Fargo, Citigroup, Bank of America, and Goldman Sachs collectively set aside $25 billion for bad loans as of the end of March 2020--and those figures may continue to increase. But even as those banks prepare for heavy loan losses, given the recent stock performance of the Solactive MicroSectors U.S. Big Banks Index banks in April (+12.60%), investors may already be looking ahead to a potential recovery of the financial sector. On an individual basis, the performance of the largest U.S. bank stocks has diverged. Wells Fargo, which set aside the most money for loan loss provisions as of the first quarter according to Bloomberg, is trading down 56.58% year-to-date as of May 15, while Goldman Sachs is only trading down 25.25% since the beginning of the year. But as a group, big banks have outperformed the broader financial sector. The Solactive MicroSectors™U.S. Big Banks Index (SOLUSBBT), which provides equal-weight exposure to the 10 largest U.S.-listed banking stocks by market cap, closed up 12.60% for the month of April 2020, compared to 9.58% for the Financial Select Sector Total Return Index (IXMTR). Source: Bloomberg Data through April 30, 2020That relative outperformance could be explained by the concentration of the index--and the underperformance by lack thereof. Financial indices like the Financial Select Sector Index are diversified across the entire sector, offering exposure to large banks, regional banks, insurance firms, capital markets firms, REITS, and other financial institutions. But sentiment in the sector can often be driven by the performance of the largest banks, and the outperformance of the MicroSectors U.S. Big Bank Index shows that the largest banks in the U.S. outperformed the broader financial sector in April. In this instance, the concentration outperformed the diversification. It's possible that investors looking to the financial sector will favor the largest financial stocks, as these banks may be better positioned to withstand an adverse economic environment compared to their smaller peers. As of the end of April, the index included Bank of America (NYSE: BAC), Citigroup (NYSE: C), JPMorgan Chase (NYSE: JPM), Goldman Sachs (NYSE: GS), Wells Fargo (NYSE: WFC), Morgan Stanley (NYSE: MS), PNC Financial (NYSE: PNC), U.S. Bancorp (NYSE: USB), Charles Schwab (NYSE: SCHW), and Truist Financial (NYSE: TFC).Gaining Exposure For traders looking to gain bullish exposure to the big banks as a group, the MicroSectors™ U.S. Big Banks Index 3X Leveraged ETN (NYSE: BNKU) and MicroSectors™ U.S. Big Banks Index 2X Leveraged ETN (NYSE: BNKO) attempt to deliver three times and twice the daily exposure to the index, respectively. On the bear side, the MicroSectors™ U.S. Big Banks Index -3X Leveraged ETN (NYSE: BNKD), MicroSectors™ U.S. Big Banks Index -2X Leveraged ETN (NYSE: BNKZ), and MicroSectors™ U.S. Big Banks Index -1X Leveraged ETN (NYSE: KNAB) attempt to deliver the three times inverse, two times inverse and inverse daily performance, respectively, providing a way for active traders to potentially benefit from decreases in the stock prices of the big banks without outright shorting the stocks. The exchange traded notes are subject to the credit risk of Bank of Montreal, the issuer of the ETNs. The ETNs are also subject to the issuer's credit ratings, and the issuer's credit spreads may adversely affect the market value of the notes. Please note that leveraged, inverse and inverse leveraged ETNs seek a return on the underlying index for a single day. Those investments are not "buy and hold" investments, and should not be expected to provide the respective return of the underlying index's cumulative return for periods greater than a day. The investments are intended to be daily trading tools for sophisticated investors to manage daily trading risks as part of an overall diversified portfolio. They are designed to achieve their stated investment objectives only on a daily basis. Leveraged investments include risk and are not suitable for all investors. Please read the disclosure documents, including the relevant pricing supplements for information.Bank of Montreal, the issuer of the ETNs, has filed a registration statement (including pricing supplements, a prospectus supplement and a prospectus) with the Securities and Exchange Commission (the "SEC") about the ETNs that are being offered by this free writing prospectus. Please read those documents and the other documents relating to these offerings that Bank of Montreal has filed with the SEC for more complete information about Bank of Montreal and these offerings. These documents may be obtained without cost by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Bank of Montreal, any agent or any dealer participating in these offerings will arrange to send the applicable documents if so requested by calling toll-free at 1-877-369-5412. See more from Benzinga * A Potentially Profitable Options Trade In Shopify * Here's A Bullish Options Play On Gilead * 2 Options Strategies For Nvidia Ahead Of Earnings(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • GuruFocus.com

    The Bank of Montreal Looks Attractive After Falling More Than 40%

    Shares of the bank had had a rough start to the year, but it currently offers an over 7% dividend yield Continue reading...