Financials;HSBC is considering whether to maintain its HQ in London or if it should switch to a new city; Junk debt sales remain very strong as super low rates

Financials

· Banks – 90 day Window for Banks to Buyback $118B of Trups has opened per the Dodd-Frank financial reform bill. Wall St. execs and lawyers say several banks are considering redeeming Trups as many contracts state that a legal change gives the issuer 3 months to redeem the securities at face value (the removal of Trups from Tier 1 capital amounts to such an event). Cnbc http://www.cnbc.com//id/38719245

· COF – July Master Trust #s show continued sequential improvement across divisions for both NCOs and 30+ day Delinqs. Domestic Card - NCOs 8.13% vs. June’s 9.28%; 30+ day Delinqs 4.66% vs. June’s 4.79%; Auto Finance NCOs 2.60% vs. June’s 2.72%s, 30+ day Delinqs 7.72% vs. June’s 7.74%; Int’l Card NCOs 7.86% vs. June’s 8.29%, 30+ day Delinqs 5.94% vs. June’s 6.03%. http://edgar.sec.gov/Archives/edgar/data/927628/000114036110033461/ex99_1.htm

· Junk debt sales remain very strong as super low rates on safer haven securities has boosted demand for higher yields; junk sales totaled $15.4B last week, a record; for Aug, sales are running $21.1B vs. the average over the last 10 yrs of just $6.5B; the majority of sales have been to refinance higher cost debt or pay large dividends to PE owners (WSJ)

· IG debt sales also very strong – JNJ this week sold 10yr paper w/the lowest coupons on record (per BBG)

· “Hindenburg Omen” received a lot of attention on Fri; some technical analysts think the indicator (where large amounts of stocks make new lows and highs, signaling an internal disconnect) could signal a broader market sell-off in Sept (WSJ) 

· HSBC is considering whether to maintain its HQ in London or if it should switch to a new city less hostile to financial services; while some are alarmed at the prospect of the review, HSBC insists it conducts this reflective process every three years – The Independent   http://www.independent.co.uk/news/business/news/hsbc-to-review-london-hq-as-osbornes-levy-hits-banks-2052817.html

· BankUnited is planning an IPO according to sources; the bank is looking to expand via acquisition and needs public equity to use as currency – DJ 

· Aviva – some shareholders in the co are said to be upset that they weren’t consulted by Aviva before the firm rejected a bid for its general insurance assets from RSA; the shareholders are expected to call for a strategic review by Aviva – Reuters/London Times

· Bank failures – just one announced on Friday – Palos Bank and Trust Company fails; FMBI assumes deposits and some assets from FDIC. 

· U.K. Bank Tax Comes Under Fire – Critics argue it failed to signif alter bankers’ behavior and rein in compensation levels. WSJ http://online.wsj.com/article/SB10001424052748704296704575431151057212756.html?mod=ITP_moneyandinvesting_2