BlackRock's profit hit by lower fees for lending stocks

), the world’s largest asset manager, took in less cash last quarter as investors moved into lower-cost bond funds, and it made less money lending out stocks.

The company, manager of $6.8 trillion in assets, missed analysts’ estimates for quarterly sales and profits on Friday, despite attracting $151 billion in new money, as much of that cash moved into lower-fee fixed income funds and accounts used to store cash. The decline in fees for lending out stocks resulted from reduced demand by borrowers, typically hedge funds that want to “short” them, selling the stocks and hoping to buy them back later at a lower cost.

Meanwhile, BlackRock said its iShares-branded ETFs took in $36.10 billion of new money, up from $30.69 billion in the preceding quarter.

Really

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

After years of plenty America Inc is struggling to crank out more earningsTo assume profits for big American firms will keep on growing is complacent—and possibly dangerous Economic inequality catching up to them? It was a good run... for them. Or maybe just plain stoopid! Market just hit an all time high for the 2nd time in 1year
Source: TheEconomist - 🏆 6. / 92 Read more »

Goldman Sachs' equities-backed earnings results may pressureBooming stock markets around the globe helped Goldman Sachs Group Inc offset dec... They should make progress in delivering one's own incentive program for their own self. Let's pressure Goldman Sachs to shut down. The bankers take $10 million salaries for doing what? Speculating on our hard work.
Source: Reuters - 🏆 2. / 97 Read more »