News Roundup: HSBC sells Latin ops; Fannie gains in Q1

HSBC to sell Latin America operations

HSBC may sell operations in several Latin American countries; the move lets the company focus on core markets.

Units being considered for sale are in Colombia, Peru, Uruguay and Paraguay. The bank provided no timeline for the potential divestments.

Hedge fund managers bound to slip up

The U.S. economy continues a string of positive surprises, turning equity investors bullish. But, as fixed income managers sell holdings, stock market instability has returned to 2007 levels.

This is dangerous, since U.S. data appears to point to a short-term cyclical upturn amid a major global deleveraging phase.

Fannie Mae doesn’t need government aid

U.S. mortgage giant Fannie Mae reported its first net income gain since the 2008 financial crisis—the company earned $2.7 billion in the January-March quarter, up from a net loss of $6.5 billion last year.

As a result, the company will pay a dividend of $2.8 billion to the Treasury Department, instead of seeking additional aid from taxpayers, who have paid over $150 billion to support the company over the past few years.

Gains came mostly from lower expenses; home price declines have slowed and fewer mortgages are in serious delinquency.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.