BBVA SA is working on a significant risk transfer tied to a portfolio of mortgages as banks press ahead with such deals amid the ongoing war in the Middle East. The Spanish lender is discussing an SRT tied to about €3 billion ($3.5 billion) of home loans with high loan-to-value ratios, according to people familiar with the matter, who asked not to be identified because the matter is private. High ...
BBVA SA is working on a significant risk transfer tied to a portfolio of mortgages as banks press ahead with such deals amid the ongoing war in the Middle East. The Spanish lender is discussing an SRT tied to about €3 billion ($3.5 billion) of home loans with high loan-to-value ratios, according to people familiar with the matter, who asked not to be identified because the matter is private. High loan-to-value mortgages typically involve borrowing 85% to 95% or more of a property’s value. With less equity as a buffer, lenders may face a greater risk of losses if home prices fall. Such loans often carry higher interest rates. Banks use SRTs as a way to insure loans against default, typically obtaining protection for between 5% and 15% of the loan value. That allows them to increase their solvency ratios and reduce reliance on less shareholder-friendly options such as issuing new equity. It also increases their leeway for new lending, acquisitions or shareholder payouts. The BBVA deal will be in part placed through unfunded credit protection, the people said, a friendly format for insurers whereby they don’t provide cash up front, but compensate the bank only if losses occur. The SRT transaction is equivalent to over 10% of the reference portfolio, the people said, and its terms, including size, are still being discussed with investors. A representative for BBVA declined to comment. Last week, the Spanish lender completed its largest SRT to date, linked to a portfolio of €4.5 billion corporate loans. Its pricing was “comparable to similar transactions” last year, BBVA said . BBVA generated 35 basis points of capital in 2025 — equivalent to the release of €11 billion in risk-weighted assets — by issuing SRTs, Chief Financial Officer Luisa Gomez-Bravo said last month . The lender is considering transactions tied to loans in Mexico and Turkey, she said. ING Groep NV, Deutsche Bank AG and NatWest Group Plc are among banks that are going ahead with SRT deals despite height...
Bank of China (Hong Kong), one of three note-issuing banks in the city, reported a modest 5 per cent growth in net profit last year, as exposure to the troubled mainland property sector offset its strong performance in the wealth business. The lender reported a net profit of HK$40.12 billion (US$5.14 billion), or HK$3.7947 per share, compared with HK$38.23 billion a year earlier, according to a st...
Bank of China (Hong Kong), one of three note-issuing banks in the city, reported a modest 5 per cent growth in net profit last year, as exposure to the troubled mainland property sector offset its strong performance in the wealth business. The lender reported a net profit of HK$40.12 billion (US$5.14 billion), or HK$3.7947 per share, compared with HK$38.23 billion a year earlier, according to a stock exchange filing on Monday. The results beat analysts’ estimates of HK$39.3 billion. BOCHK, the...
How Gas Prices Compare Around The World The war in Iran has driven up oil prices in many countries , with gasoline prices turning into a topic of discussion around the world. The increases have been particularly pronounced in emerging markets, with gasoline prices jumping by more than 50 percent in the Philippines and nearly as much in Nigeria (around 49 percent), with diesel rising even more stee...
How Gas Prices Compare Around The World The war in Iran has driven up oil prices in many countries , with gasoline prices turning into a topic of discussion around the world. The increases have been particularly pronounced in emerging markets, with gasoline prices jumping by more than 50 percent in the Philippines and nearly as much in Nigeria (around 49 percent), with diesel rising even more steeply. Advanced economies have also seen notable increases, with gasoline prices climbing by roughly 25 to 30 percent in the United States and Canada over the period, and diesel prices up by around 40 percent in both countries. Across Europe, price hikes have been more moderate but still significant, with gasoline rising by around 17 percent in France and Germany, while diesel (more directly linked to global trade and transport) saw stronger increases of up to 30 percent. In Asia, the picture is more mixed, with relatively limited increases in China , South Korea and Japan (from 2.5 to 10 percent for gasoline), reflecting in part the use of price controls and other government measures to cushion the impact of rising global oil prices. You will find more infographics at Statista However, as taxes are making up a big chunk of the gas price in the majority of industrialized nations, countries taxing gasoline at lower rates will still see lower gas prices in comparison. One example of this is the United States. As Statista's Katharina Buchholz points out , even at a gas price of around $4.29 per gallon on average, Americans are still paying much less to fill up their cars than people in many industrialized nations, including other car-based economies like Australia or Canada. According to website Global Petrol Prices, these two nations were already paying between $5.47 and $5.91 for a gallon. You will find more infographics at Statista Europe has some of the highest gasoline prices in the world. Most of Western Europe was paying upwards of $7.00 for a gallon of gas as of March 23...
While Wall Street fixated on artificial intelligence chips and soaring tech valuations, one blue-chip Dow name delivered returns that left Nvidia (NASDAQ:NVDA) in the dust. Over the past year, Caterpillar (NYSE:CAT) shares have risen 104%, more than double Nvidia’s 50% gain. That outperformance came not from flashy semiconductors, but from yellow machines moving dirt for ... The Surprising Dow Sto...
While Wall Street fixated on artificial intelligence chips and soaring tech valuations, one blue-chip Dow name delivered returns that left Nvidia (NASDAQ:NVDA) in the dust. Over the past year, Caterpillar (NYSE:CAT) shares have risen 104%, more than double Nvidia’s 50% gain. That outperformance came not from flashy semiconductors, but from yellow machines moving dirt for ... The Surprising Dow Stock That Has Outperformed Nvidia by 2-to-1
A 2025 Fidelity Retiree Health Care Cost Estimate found that a 65-year-old may need $172,500 to cover healthcare costs in retirement. For many Americans, that figure may seem surreal, especially if they've always believed Medicare would cover all health-related expenses. The issue at hand is the number of hidden healthcare costs that Medicare recipients must cover. They include the following. Imag...
A 2025 Fidelity Retiree Health Care Cost Estimate found that a 65-year-old may need $172,500 to cover healthcare costs in retirement. For many Americans, that figure may seem surreal, especially if they've always believed Medicare would cover all health-related expenses. The issue at hand is the number of hidden healthcare costs that Medicare recipients must cover. They include the following. Image source: Getty Images. Continue reading
bfk92/iStock via Getty Images Kimbell Royalty Partners ( KRP ) expects its 2026 production to be roughly similar to its 2025 production. Around 32% of its production is oil, of which approximately 20% is hedged for 2026. Thus, it benefits a reasonable amount from higher oil prices, and I project its average 2026 quarterly distribution to be $0.47 per unit now at the current strip. This is compared...
bfk92/iStock via Getty Images Kimbell Royalty Partners ( KRP ) expects its 2026 production to be roughly similar to its 2025 production. Around 32% of its production is oil, of which approximately 20% is hedged for 2026. Thus, it benefits a reasonable amount from higher oil prices, and I project its average 2026 quarterly distribution to be $0.47 per unit now at the current strip. This is compared to its $0.36 per unit quarterly distribution during 2H 2025. I have increased my estimate of Kimbell's value from $16.50 per unit to $17.50 per unit in my base case scenario using the current 2026 strip ($84 WTI oil) and then $70 WTI oil and $3.75 NYMEX natural gas after that time. An upside scenario with $95 WTI oil in 2026 and $75 WTI oil after 2026 would increase its estimated value further to around $19.00 per unit. 2026 Outlook The midpoint of Kimbell's 2026 production guidance is for 25,500 BOEPD (32% oil, 20% NGLs, and 48% natural gas) in average production. This is fairly close to its 2025 production, which ended up at 25,760 BOEPD (33% oil). The current strip for 2026 involves roughly $84 WTI oil and $3.85 NYMEX natural gas. At those commodity prices, Kimbell is projected to generate $379 million in revenues after hedges. Kimbell has roughly 20% of its 2026 oil and natural gas production hedged, resulting in an estimate of negative $11 million in 2026 hedge value. Around $10 million of that negative amount is due to its oil hedges. Type Barrels/Mcf Realized $ Per Barrel/Mcf Revenue ($ Million) Oil (Barrels) 2,978,400 $82.50 $246 NGLs (Barrels) 1,861,500 $31.00 $58 Natural Gas [MCF] 26,805,600 $3.00 $80 Lease Bonus and Other Income $6 Hedge Value -$11 Total $379 Click to enlarge Kimbell is thus projected to generate $270 million in 2026 distributable cash flow, or approximately $2.50 per unit. Kimbell's 75% payout ratio would translate into an average quarterly distribution of close to $0.47 per unit during 2026. $ Million Marketing and Other Deductions $17 Product...