Moody’s 3Q14 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Lower volume of issuance, but higher number of deals

“Despite a year-over-year decline in global non-finance corporate bond issuance volume and flat rated bank loan issuance volume, Moody’s benefited from a greater number of smaller deals.”

Global structured finance revs up 22%

“global structured finance revenue for the third quarter was $102 million, an increase of 22% from the prior year primarily reflecting increased rating activity for U.S. collateralized loan obligations or CLO.”

Investment grade debt issuance looks like it’s stabilized

“For investment grade we have had a very good settling of the market since last week. Last week did see in the U.S. reduced investment grade issuance of only $6 billion. This week and I just checked before I came upstairs it’s probably going to be a $20 billion week, a little bit better. Next week looks to be the same or a little bit better. What we are seeing now is that pipelines are robust. The pipelines are quite strong. We are expecting a heavy fourth quarter in investment grade because we have $100 billion of M&A pipeline that needs to be financed before the end of the first quarter in 2015. So investment grade looks like it stabilized and looks quite strong.”

High yield and leveraged loan pipelines look average

“High yield did take a step back last week and had only one deal priced last week. This week it’s been quite a good bit healthier though. So I think we characterize state of the high yield markets as improving. And we have seen some transactions that are looking ready to come next week so that’s good. The pipeline would be viewed as average however. And on leverage loans we also see an average pipeline and we do see perhaps $20 billion in leveraged loans for October. So again that pipeline is looking a little bit on the average side as well.”

Get about 5 bps per deal

“I think we would say the 5-ish basis points we get on investment grade deals that service us very well and we think provides good value for the issuers as well. On larger deal particularly, deals as large as Verizon we wouldn’t apply that same basis point level to a deal of that size. So I wouldn’t make an overall judgment thereon on what the price yield would be on those, but 5-is basis points on per issue pricing would be about right.’

When the 10 year traded to 1.87 there was a view that it was because firms aren’t ready to provide the liquidity that they once did

“last Wednesday when the ten year traded down to 1.87, there was a view that a lot of that unusual decline was because capital markets suggest that various firms are not holding the same sorts of bond inventories that they did before to act as a shock absorber as rates move around.”

TD Ameritrade 3Q13 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“Average client trades per day were 382,000, an activity rate of 6.4%. Net new client assets of $10 billion, an 8% annualized growth rate. Record total client assets of $556 billion were up 18% year-over-year. The record interest sensitive assets of $96 billion were up 16% year-over-year”

“we returned 107% of our earnings to our shareholders via cash dividends and debt repayments.”

“Yes. I think more recently, the wire houses have made some moves, which have made it a little bit more difficult in the breakaway brokers. But what we always find is, in the market, it could be an independent broker/dealer is 1 year on their wire house. The next year, it could be 1 wire house to 1 independent broker/dealer. There always seems to be someone who’s making some changes that upset their advisors. And that always means there’s opportunity and people looking. And I do think in this market, with the — where the markets are at and how well the markets have gotten, this is a good market if you want to move to the independent channel and move to a fee-based model off of the commission-based model. This has actually been a pretty good environment to do that. We’ve seen that in spades in our results.”

“we don’t normally — don’t comment too much on M&A. But I think it’s suffice it to say, we’ve always kept an eye open for entering the mix in strategic and financial sense. And I think, as evidenced by our returning capital as aggressively as we can, we really don’t see anything on the near-term horizon that would make financial sense.”

TD Ameritrade FY 2Q13 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

$TD Earnings Call Notes

“Retail investor sentiment improved over the quarter…Our Investor Movement Index continues to demonstrate increased bullishness, showing upward movement in 8 of the last 9 months and is currently at its highest level since June of 2011. But while settlement has improved, engagement remains toughened as many investors hesitate to reenter the markets. ”

“The reality is that while those investors who are engaged in the markets are increasingly bullish and our RIAs continue — are currently fully invested with record low levels of client cash as a percentage of client assets, many retail investors remain cautious”

“Our trades per day improved by 13% sequentially but remain below our expectations in light of how the equity markets have done over the last 12 to 15 months as a large number of investors remain cautious.”

“as we have said many times before and we’ll continue to emphasize, we remain very well positioned for rising rates”

“I think what we saw is in January and February after the tax deal and the fiscal cliff, people started to reenter the markets, but then Europe started to become uncertain here again and it feels a bit like Groundhog Day. But we’re having one of those markets where there’s that uncertainty but there’s not much volatility ’til yesterday.”

“I would say the odds or the probability of margin loans going up with the market…happens probably 75% of the time. And there always is these 25% that it doesn’t. And it didn’t happen this quarter. So we’ve been watching and thought it would come. It didn’t come…I think the other thing that happened, there’s no question, we did have pretty good margin loans on Apple…Apple’s decline certainly has contributed to the margin loans.”

“ETFs for a retail trader, yes, they’re using the ETF…[but] they continue to be very interested in equities, and mutual funds continue to do well, equity mutual funds or balanced mutual funds. So from my perspective, we’re not seeing a significant change.”

“every year as we go towards the end of March, the asset gathering slows a bit and then the first part of April in particular like right now…And then you typically pick back up.”

“an increasing market with a few corrections along the way for increased volatility. That’s a perfect market environment for us”

“It is an advice and guidance market”

Goldman Sachs 1Q13 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“later in the quarter, market sentiment was mixed at political uncertainty in Europe and U.S. began to resurface…In aggregate, as the quarter progressed, these concerns impacted both client activity and risk appetites.”

” Another uncertainty that has occupied investor’s minds is the potential impact of regulatory reform on our industry. While everyone would like clarity, it’s natural for these rules to be developed over multi-year timeframes especially given the complexity and the potentially significant ramifications for the global economy. As a firm we remain a constructive participant in these discussions.”

“these are exceptionally complex rules. So obviously incredibly critical, not just with the financial institutions that will limit the rules, but really quite frankly more broadly in terms of their impact on the capital markets and given the complexity I think it’s quite natural that these are going to take time to implement. And the regulators themselves it’s a massive amount of work that they have to go through to get to a place to introduce these rules. So I think this process in terms of the time its taking, I think we would love to – I think everyone would like to have the final rules set in front of us, clients would certainly want that, we would want that, our constituency would want that, but I think its very natural and on balance, I think that can improve the quality of the rule making, which to-date is what we’ve seen for example in clearing. I think it’s a good thing on balance.”

[in response to a question about Goldman’s new Business Development Company] “That’s very much just part of our asset management strategy where we’re managing assets on behalf of our clients as a fiduciary. We obviously have asset core competence in there, credit risk management skills, so no this — that has nothing to do with Volcker.” [;)]

“it feels like there’s reasonable market share opportunity given the environment”

“I think some of the volatility we have seen particularly in commodities it looks more like liquidation of crowded positions. So, I wouldn’t read too much into it.”

“In terms of talent, quite frankly it feels like one of the better market environments we’ve seen in quite a long time. Our ability to acquire and add people to our team seems pretty good.”

[on the differences between global regulation] “I think generally speaking for the rules that have been proposed versus how they’ve been finalized, they generally start in one place. There’s been engagement with market participants and they generally have migrated to a place that’s better for the capital markets.”

Note: the word “client” appeared 53 times in the transcript