Financial Business Review: KKR Branches OUT, Bank of America’s Net Interest Margin LOSS
Here are Thursday’s top stories:
KKR & Company, L.P. (NYSE:KKR) is filing to launch two funds to individual investors: one a high yield bond fund, and the other allows investing in “special situations”. Acquisitions and takeovers are still KKR’s core business, but the company is branching out into asset management, real estate, as well as other lines.
Cypress Sharpridge Investments, Inc. (NYSE:CYS) Chief Executive Kevin Grant commented that “Our biggest competitor for assets is the Fed.” The remark was made during the firm’s earnings conference call, pertaining to what could become a volatile mREIT sector, as yield-obsessed investors crowd each other out, with the central bank winning the race.
Bank of America’s (NYSE:BAC) 30 basis point decline net interest margin comes to a lost quarterly earnings power of $1.27 billion, calculates John Steiner, who calls it a “hit (that) is recurring, not one time.” This loss to the company’s underlying business could have to do with the shares’ falling off so far this week, in the face of an impressive beat on earnings due to a large reserve release.
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