Financial Sector Update for 05/17/2018: CIGI, CIGI.TO, FCF, ZAIS, JPM

Top Financial Stocks

JPM -0.50%

BAC -0.97%

WFC -1.67%

C -0.64%

USB +0.20%

Financial stocks were narrowly lower in late Thursday trade, with the NYSE Financial Sector Index dropping over 0.2% while financial companies in the S&P 500 Index were climbing almost 0.3%. The Philadelphia Housing Sector Index was rising more than 0.4%.

In economic news:

First-time applications for unemployment assistance rose more than expected last week, climbing to 222,000 initial applicants during the seven days ended May 12, up from 211,000 first-time claim during the prior week period and missing Wall Street estimates expecting a smaller 4,000 rise to 215,000 applications.

The Philadelphia Fed survey of general business conditions in the mid-Atlantic coastal region jumped 11.2 points in May over April levels, reaching a 34.4 reading and blowing past the analyst consensus expecting a 2.2-point decline to a 21.0 reading this month. New orders supported the unexpectedly strong rise, climbing to a 45-year high.

Among financial stocks moving on news:

- Colliers International Group (CIGI,CIGI.TO) has turned lower late in Thursday trading, reversing a nearly 1% gain that followed the Canadian real-estate service company pricing a EUR210 million private placement of 2.23% senior unsecured notes due 2028. After first paying offering expenses, the company plans to use net proceeds from the new offering to pay down its revolving credit facility and for general corporate purposes.

In other sector news:

+ First Commonwealth Financial ( FCF ) was narrowly higher on Thursday after the bank holding company late Wednesday priced a $50 million private placement of 4.875% fixed-to-floating rate subordinated notes due 2028 with institutional investors at par as well as pricing another $50 million private offering of 5.500% fixed-to-floating rate subordinated notes due 2033, also at par. Net proceeds from the concurrent offerings, will be used for general corporate purposes, including working capital and funding potential acquisitions and other strategic business opportunities. The notes are expected to qualify as Tier II capital for regulatory purposes.

+ ZAIS Group Holdings ( ZAIS ) was about 1% higher in recent trading, drifting slightly off its session high earlier Thursday, that followed the asset manager saying it expects to close its going-private transaction on Friday, May 18, after shareholders earlier this week voted to accept the $4.10-per-share buyout offer from an investor group led by Christian Zugel, the company founder, board chairman and chief investment officer and also includes CEO Daniel Curry and other ZAIS Group executives. The company did not announce the vote-margin.

- J.P. Morgan ( JPM ) still was slightly lower Thursday, paring a 1% decline earlier in the session, that followed the financial-services giant saying its asset management unit was partnering with iCapital Network on an exclusive, white-label offering providing registered investment advisors and their clients with access to some of its alternative investment strategies. Financial terms of the new relationship were not disclosed.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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