Tag: Credit rating

EconomyFinancePolicy

Major Asset Managers Alter Fund Benchmarks to Maintain French Bond Positions

Leading asset management firms are reportedly adjusting their fund benchmarks to circumvent mandatory sales of French sovereign debt. The strategic moves come as credit rating changes threaten to push France below strict investment thresholds. Industry sources indicate these changes allow continued exposure to French bonds despite downgrade pressures.

Fund Giants Adjust Investment Parameters

Global asset management leaders BlackRock and State Street have reportedly modified benchmark indexes for certain European bond funds, according to sources familiar with the matter. The changes appear designed to prevent automatic divestment of French government debt following recent credit rating adjustments that pushed France below double-A thresholds.

by Darren Holt
BusinessPersonal Finance

** Wells Fargo Profit Beats Estimates, Raises ROTCE Target After Asset Cap Lifted

** Wells Fargo exceeded Wall Street expectations with Q3 profit of $1.66 per share and raised its medium-term ROTCE target to 17-18%. The boost follows the Federal Reserve’s removal of the bank’s seven-year asset cap, signaling renewed growth potential for the fourth-largest U.S. lender. **CONTENT:**

Wells Fargo has topped third-quarter profit estimates and raised its key profitability target after regulators removed the bank’s seven-year asset cap, signaling a new growth phase for the institution. The San Francisco-based bank reported earnings of $1.66 per share, beating analyst expectations of $1.55 per share, while announcing an ambitious new return on tangible common equity target of 17-18%.

by Natalie Brooks