Latest news with #TroyRohrbaugh
Yahoo
15-07-2025
- Business
- Yahoo
JPMorgan Chase launches Strategic Financing Solutions unit
JPMorgan Chase has launched a new division within its commercial and investment banking sector, with focus on tailored financing solutions across both public and private markets, reported Bloomberg. The initiative, referred to as Strategic Financing Solutions, will involve a collaborative effort among banking, markets, and sales teams, as outlined in an internal memo. The new unit will initially concentrate on structured private solutions, infrastructure finance, strategic asset-backed securities finance, merchant banking, and direct lending. Doug Petno and Troy Rohrbaugh, co-heads of the commercial and investment bank, noted in the memo, 'Financing needs are becoming increasingly complex while investors are seeking exposure to new markets.' They added that the team 'will focus on delivering alternative solutions to our corporate and sponsor clients.' Warfield Price, who leads general industries leveraged finance, and Masi Yamada, global head of corporate structuring, will jointly oversee the new group while maintaining their existing responsibilities. They will report to Kevin Foley, global head of capital markets, and Brad Tully, global head of private side sales and corporate derivatives, as per the memo seen by Bloomberg News. This move is intended to capitalise on the merging of public and private markets, particularly as more US firms opt to remain private for extended periods. An example of this trend is 3G Capital's intended acquisition of Skechers USA, for which JPMorgan provided advisory services in a $9.4bn take-private transaction announced earlier this year. This deal involved a combination of cash and debt, with JPMorgan facilitating two term loans, two notes, and a revolving credit facility. The newly formed business will also encompass JPMorgan's direct-lending operations, for which the bank allocated an additional $50bn earlier this year, following the deployment of over $10bn across 100 transactions since 2021. Recently, JPMorgan Chase appointed David Frame as the global CEO of its private bank. He previously served as the CEO of the US private bank. "JPMorgan Chase launches Strategic Financing Solutions unit" was originally created and published by Private Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
14-07-2025
- Business
- Yahoo
JPMorgan creates new unit to tap funding demand, memo says
(Reuters) -JPMorgan Chase has created a new unit aimed at providing alternative financing strategies to clients, according to an internal memo seen by Reuters on Monday. The new unit, strategic financing solutions (SFS) – comprising experts from banking, markets and sales, will initially focus on structured private solutions, infrastructure finance, strategic asset-backed securities finance, merchant banking and direct lending. "Financing needs are becoming increasingly complex while investors are seeking exposure to new markets," Doug Petno and Troy Rohrbaugh, co-heads of the commercial & investment bank, wrote in the memo. The new team will focus on delivering alternative solutions to their corporate and sponsor clients, while also providing access to transactions in both public and private markets to their investor clients, according to the memo. Warfield Price and Masi Yamada, two senior executives, will co-head the SFS group in addition to their current roles. They will report to Kevin Foley, global head of capital markets, and Brad Tully, global head of corporate derivatives and private side sales, who will oversee the initiative. The move to create a new unit comes at a time when banks are looking to tap into the rapidly growing private credit market, which has attracted increasing investor interest as companies seek funding outside traditional bank financing. Private credit refers to loans provided by non-bank lenders, which are typically made to risky borrowers or companies looking to finance mega buyouts with debt. Earlier this year, Goldman Sachs announced the creation of Capital Solutions Group to focus on financing large deals and providing loans to corporate clients. JPMorgan's plans for the new unit were first reported by the Bloomberg News. 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
Yahoo
14-07-2025
- Business
- Yahoo
JPMorgan Forms New Banking Team Focused on Bespoke Financings
(Bloomberg) -- JPMorgan Chase & Co. created a unit in its commercial and investment bank focused on bespoke financing structures across public and private markets. Why Did Cars Get So Hard to See Out Of? How German Cities Are Rethinking Women's Safety — With Taxis Advocates Fear US Agents Are Using 'Wellness Checks' on Children as a Prelude to Arrests The business, dubbed strategic financing solutions, will be a collaboration between banking, markets and sales, according to an internal memo Monday. It will initially focus on structured private solutions, infrastructure finance, strategic asset-backed securities finance, merchant banking and direct lending. 'Financing needs are becoming increasingly complex while investors are seeking exposure to new markets,' Doug Petno and Troy Rohrbaugh, co-heads of the commercial and investment bank, wrote in the memo, which was seen by Bloomberg News. The team 'will focus on delivering alternative solutions to our corporate and sponsor clients.' Warfield Price, head of general industries leveraged finance, and Masi Yamada, global head of corporate structuring, will co-lead the group in addition to their current roles. They'll report to Kevin Foley, global head of capital markets, and Brad Tully, global head of private side sales and corporate derivatives, according to the memo. The move is aimed at capturing both the convergence of public and private markets, with more US companies choosing to stay private for longer, and increasingly complex client needs. One example is 3G Capital's planned acquisition of Skechers USA Inc. JPMorgan advised 3G in its $9.4 billion take-private deal for the footwear maker, which was announced earlier this year. The transaction was a mix of cash and debt, and JPMorgan arranged two term loans, two notes and a revolving credit facility. The new business will house JPMorgan's direct-lending effort, for which it set aside an additional $50 billion earlier this year after deploying more than $10 billion across 100 deals since 2021. Foley said in an interview in February that JPMorgan aims to be 'product-agnostic' in its offerings to clients. Goldman Sachs Group Inc. made a similar move earlier this year, when it formed a capital solutions group to recognize the growing importance of private markets. 'Our Goal Is to Get Their Money': Inside a Firm Charged With Scamming Writers for Millions Thailand's Changing Cannabis Rules Leave Farmers in a Tough Spot 'The Turbulence Is Brutal': Four Shark Tank Businesses on Tariffs Trump's Cuts Are Making Federal Data Disappear Trade War? No Problem—If You Run a Trade School ©2025 Bloomberg L.P.
Globe and Mail
09-06-2025
- Business
- Globe and Mail
Can JPMorgan's IB Division Weather the Near-Term Macro Challenges?
JPMorgan JPM remains a top player in investment banking (IB), ranking #1 in global IB fees. In 2024, the company's total IB fees soared 37% to $8.91 billion after declining in 2023 and 2022. Despite tariff-related ambiguity and extreme market volatility, momentum persisted in the first quarter of 2025. In the quarter, IB fees grew 12% year over year to $2.18 billion, fueled by strong advisory and debt underwriting activity. The near-term IB prospects are cloudy due to market turmoil and ambiguity over monetary policy. Jeremy Barnum, JPM's chief financial officer, during the first-quarter earnings conference call, said, 'In light of market conditions, we are adopting a cautious stance on the investment banking outlook. While client engagement and dialogue is quite elevated, both the conversion of the existing pipeline and origination of new activity will require a reduction in the current levels of uncertainty.' Additionally, during the Investor Day conference in May, Troy Rohrbaugh, co-CEO of the Commercial & Investment Bank (CIB) segment, noted that economic uncertainty is expected to hurt JPM's IB business in the second quarter, as deal-making activities have largely stalled. IB fees are expected to be down in the mid-teens range on a year-over-year basis. In the second quarter of 2024, IB fees in the CIB segment were $2.46 billion. Despite these challenges, JPMorgan's long-term outlook for the IB business remains strong, driven by a healthy IB pipeline and an active mergers and acquisitions (M&As) market as well as its leadership position in the business. For IB fees, we estimate a CAGR of 2.2% by 2027. How are JPM's Peers Coping With Near-Term IB Headwinds? Not only JPMorgan, other IB firms like Morgan Stanle y MS and Goldman Sachs GS are facing similar challenges. While Morgan Stanley is diversifying beyond IB to build a more balanced revenue mix, IB remains a key top-line driver. After a steep decline in 2022–2023, IB revenues rebounded 36% in 2024 to $6.71 billion and rose another 8% in the first quarter of 2025. With a stable and diversified M&A pipeline, Morgan Stanley remains cautiously optimistic, positioning itself to benefit once macroeconomic conditions improve. Goldman continues to dominate the IB business and maintains its long-standing top position in announced and completed M&As. This underscores its enduring strength in the IB business despite broader headwinds in the sector. Like its competitors, JPM and Morgan Stanley, Goldman also witnessed a decline in the IB fees in 2022 and 2023, before it rebounded last year. Despite an 8% year-over-year fall in IB revenues in the first quarter of 2025, its strong deal pipeline and advisory backlog position it well for a rebound as market conditions improve. JPM's Price Performance, Valuation and Estimates JPMorgan shares have risen 10.8% this year. In contrast, Morgan Stanley has gained 4.8% and Goldman jumped 7.2% in the same time frame. Image Source: Zacks Investment Research From a valuation standpoint, JPM trades at a 12-month trailing price-to-tangible book (P/TB) of 2.81X, slightly below the industry average. P/TB Ratio Image Source: Zacks Investment Research Moreover, the Zacks Consensus Estimate for JPMorgan's 2025 earnings implies a decline of 7% on a year-over-year basis, while 2026 earnings are expected to grow at a rate of 5.2%. In the past week, earnings estimates for 2025 and 2026 have moved marginally upward. Earnings Estimates Trend Image Source: Zacks Investment Research JPM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> 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 The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Morgan Stanley (MS): Free Stock Analysis Report
Zawya
26-05-2025
- Business
- Zawya
JP Morgan sees trade war hurting Q2: IFR
JP Morgan is expecting volatility from the trade war unleased in April to drag down investment banking revenues in the second quarter but to boost trading. Investment banking fees in the April–June quarter are on track to be down 'mid-teens [percent] – plus or minus' compared with a year earlier, depending on how the remainder of the quarter plays out, said Troy Rohrbaugh, co-CEO for the commercial and investment bank. That's a very different outcome than most expected coming into 2025, when investors and bankers foresaw investment banking fees surging throughout the year. 'Clients entered the year very bullish, expecting a pro-growth, pro-business, deregulatory environment, maybe some more big M&A,' said CIB co-CEO Doug Petno, also speaking at the bank's annual investor day. 'When they started to see some flashing yellows, flagging red signs, and a slowdown in the economy, many tapped the brake." Petno added: 'And then with the events of April, everybody put everything on hold. The typical client's got their foot on the brake at the moment.' He said almost every input variable in capital budget or valuing a company, interest rates, discount rates, currencies and taxes had yet to be determined. 'All those puzzle pieces have to come together,' Petno said. So, the typical client is taking a wait-and-see attitude. And while US president Donald Trump's tariff policy may have ratcheted up uncertainty, tariffs were only one part of it, he said. The US Federal Reserve as well as other central banks had been trying to engineer a soft landing for the last couple of years. A bigger part of the uncertainty was what kind of landing there would be in the US and globally, Petno said. The uncertainty that has cast a pall over investment banking is boosting trading revenues, however. Trading markets have been performing at peak levels for years now and rather than reverting to pre-Covid levels, Rohrbaugh expects current levels may be the new normal. He said the bank's markets group had a strong start to the quarter, but trading has cooled as volatility has moderated. JP Morgan's trading revenue should be up 'in the mid- to high single digits' percent year-on-year, Rohrbaugh said. 'Keep in mind for both markets and investment banking, we're operating in a very uncertain market, which makes forecasting difficult,' he said. Deutsche too Deutsche Bank offered a similar view. Chief executive Christian Sewing told shareholders at its annual general meeting on Thursday that clients were still 'holding back' on mergers and acquisitions and IPOs 'given the current uncertainty', but the bank had done well during early April's market turmoil. "The second quarter started with a jolt. We have come through this phase of sometimes extreme volatility well, although it remains to be seen how the tariff threat and market events will affect client behaviour,' Sewing said. Sewing and JP Morgan CEO Jamie Dimon also both flagged that European banks could benefit from the fallout from the tariff and trade war. Dimon said JP Morgan lost business as non-US clients took a nationalistic stance. 'Not that the clients were mad at us,' he said, but in some cases where there was a choice to use a national bank, some clients made that choice. Dimon did not name names but suggested those clients were on both sides of the Atlantic, in Canada and Europe. 'I do expect there'll be some of that if this trade war gets worse,' he said. 'But it's not going to change our plans.' Sewing said the US policy uncertainty could prove beneficial to Europe in the long run. 'The United States is putting both Europe's established security framework and the idea of free trade into question. More than ever Europe is needed as an engine for free trade,' he said. "The demand for a European alternative to US banks is growing,' Sewing said, calling 2025 'a year of reckoning' for the bank. Four more years Dimon said he expects to retire within four years. A year ago, he said the timetable for his retirement was less than five years. For years previously, he had said he would stay in the CEO role 'five more years.' Dimon, 69, has been CEO of JP Morgan for 19 years. 'Obviously it's up to the board,' he said. 'If I'm here for four more years or two or three, that's a long time." Dimon said the most important thing is that once he does step down, the strong teams he has in place across the sprawling bank will continue building on his success, regardless of who the new CEO is.
