Latest news with #leverageRatio
Yahoo
6 days ago
- Business
- Yahoo
Fed's Bowman: 'Time Has Come' to Revisit Leveraged Ratios
Federal Reserve Vice Chair for Supervision Michelle Bowman warns that the current approach to leverage ratio requirements has led to unintended consequences in the market. She speaks at a research conference sponsored by the International Journal of Central Banking and the Czech National Bank. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
6 days ago
- Business
- Bloomberg
Fed's Bowman Says ‘Time Has Come' to Revisit Key Capital Buffer
By and Amara Omeokwe Save Federal Reserve Vice Chair for Supervision Michelle Bowman warned the current approach to leverage ratio requirements has lead to unintended consequences in the market while adding she could support lowering interest rates as soon as July. Bowman said the 'time has come' to revisit the key capital buffer after concerns the rule has constrained lenders' trading in the $29 trillion Treasuries market.
Globe and Mail
19-06-2025
- Business
- Globe and Mail
Should Investors Worry About Enterprise Products' 3.1 Leverage Ratio?
Enterprise Products Partners LP EPD reported a consolidated leverage ratio of 3.1 as of March 31, 2025. This means the master limited partnership's net debt (after removing the equity-like portion of hybrid debt and subtracting available cash) is 3.1 times larger than its adjusted EBITDA – a measure of its core earnings from operations. EPD's leverage ratio is thus slightly above the midpoint of its target range of 2.75 to 3.25. This generally signals a strong balance sheet as the partnership has the highest credit rating in the midstream energy space. Thus, Enterprise Products is in a strong position with more flexibility to raise capital in the future at favorable rates. That said, the midstream energy giant is carefully managing its balance sheet. On its first-quarter earnings call, EPD stated that as of the March quarter of this year, 96% of its $31.9 billion in total debt carried a fixed interest rate, which means the interest payments will not increase even if market interest rates rise. The partnership added that its debt portfolio has an average maturity of 18 years, and hence has plenty of time to pay off its debt principal. Although the overall outlook appears strong, investors should continue to monitor whether the partnership can maintain healthy profits to keep its leverage ratio within the target range it has committed to. Do KMI & WMB Have a Strong Balance Sheet? Kinder Morgan KMI and Williams WMB are also leading midstream energy players. Thus, both KMI and WMB require significant capital to invest in and to maintain their midstream assets. Considering the total debt-to-capitalization ratio, WMB has significantly more exposure to debt capital than the composite players belonging to the industry. WMB has a debt-to-capitalization of 64.8%, considerably higher than the industry's 56.8%. Kinder Morgan's story is, however, favorable. This is because KMI, responsible for transporting roughly 40% of the natural gas consumed in the domestic market, has a debt-to-capitalization of 50.8%. EPD's Price Performance, Valuation & Estimates Units of EPD gained 18% over the past year, outpacing the 17.5% rise of the composite stocks belonging to the industry. One-Year Price Chart From a valuation standpoint, EPD trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 10.08x. This is below the broader industry average of 11.48x. The Zacks Consensus Estimate for EPD's 2025 earnings hasn't been revised over the past seven days. EPD currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Williams Companies, Inc. (The) (WMB): Free Stock Analysis Report Enterprise Products Partners L.P. (EPD): Free Stock Analysis Report Kinder Morgan, Inc. (KMI): Free Stock Analysis Report
Reuters
17-06-2025
- Business
- Reuters
Fed announces meeting to discuss easing bank leverage rules
WASHINGTON, June 17 (Reuters) - The Federal Reserve will consider plans to ease leverage requirements on larger banks at a meeting later this month, kicking off what is expected to be a broad effort to reconsider bank rules. The U.S. central bank announced the board meeting, scheduled for June 25, to discuss changes to the so-called "supplementary leverage ratio," which requires banks to set aside capital against assets regardless of their risk. The meeting will be the first following Fed Governor Michelle Bowman's confirmation as the central bank's top regulatory official. It could be the first of several rule-easing projects at the Fed as Bowman, a Republican tapped by President Donald Trump, has charted an ambitious plan for overhauling how the central bank regulates and monitors some of the nation's largest and most complex banks. The Fed did not provide any details on the proposal under consideration, but banks have clamored for years for changes to the supplementary leverage ratio, potentially by exempting traditionally safe assets or revising the formula used to calculate the requirement. The industry has argued the requirement was meant to serve as a baseline, requiring banks to hold capital against even very safe assets, but has grown over time to become a binding constraint on lending, and can actually hinder their abilities to intermediate Treasury markets during times of stress.
Bloomberg
23-05-2025
- Business
- Bloomberg
Bessent Says SLR Could Change Over the Summer
US Treasury Secretary Scott Bessent says a shift in the supplementary leverage ratio could bring yields down by tens of basis points during an interview with David Westin on Bloomberg Television. (Source: Bloomberg)
