The risk appetite in the bond market has picked up this year as investors grow more comfortable with the economic outlook and the path of interest rates. A set of bond ETFs through yesterday's close (Feb. 24) highlights a clear trend so far in 2026: favoring government securities with longer maturities has been a winning strategy. Longdated Treasuries continue to lead by a comfortable margin year to date. The Vanguard LongTerm Corporate Bond ETF (NASDAQ:VCLT) is up 3.5% so far this year. In second place is ...

Four of the biggest US tech companies have forecast capital expenditures that will reach about $650 billion in 2026 for new data centers and gear, underscoring just how quickly the AI race is accelerating. Lei Qiu, AllianceBernstein CIO of Thematic Innovation Equities, joins Caroline Hyde and Ed Ludlow to discuss what this wave of investment means for markets and disruption across industries on "Bloomberg Tech." -------- Like this video? Subscribe to Bloomberg Technology on YouTube: https://www.youtube.com/ ...

Financial Data and Key Metrics Changes - Full-year non-GAAP operating earnings were $5.64 per share, or $6.21 per share after adjusting for notable items, up 1% over 2024, with growth held back by elevated mortality claims [7][8] - Full-year organic cash generation was $1.6 billion, consistent with guidance, expected to increase to approximately $1.8 billion in 2026, and on track to reach $2 billion in 2027 [8][25] - Assets under management and administration ended 2025 at a record $1.1 trillion, up 10% year-over-year [8][18] Business Line Data and Key Metrics Changes - In Retirement, net flows were $5.9 billion in 2025, a 4% organic growth rate, supported by record RILA sales [9] - Wealth Management saw full-year net inflows of $8.4 billion, a 13% organic growth rate, with the number of wealth planners increasing by 12% [9][21] - AllianceBernstein experienced overall net outflows of $11.3 billion, but its private markets business increased AUM by 18% to $82 billion [10] Market Data and Key Metrics Changes - The retirement segment's net interest margin increased 2% sequentially, driven by growth in general account assets [19] - The adjusted operating margin for AllianceBernstein was reported at 33.7%, at the upper end of its targeted range [13][21] - The company expects mid to high single-digit growth in pre-tax earnings for the retirement segment in 2026 [28] Company Strategy and Development Direction - The company is focused on refining its business mix to emphasize U.S. retirement, asset management, and wealth management as core growth engines [5] - A life reinsurance transaction with RGA freed $2 billion of capital and reduced mortality exposure by 75%, supporting growth in asset and wealth management [11] - The company aims to achieve $150 million in expense savings by 2027, with $120 million already in run rate results [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2027 financial targets, citing solid momentum entering 2026 and reduced mortality exposure [6][31] - The company anticipates continued growth in assets under management and advice, supported by healthy organic growth trends [16] - Management acknowledged competitive market conditions but remains optimistic about the company's ability to execute and capture growth opportunities [5][32] Other Important Information - The company returned $1.8 billion to shareholders in 2025, including $500 million of additional share repurchases [8][24] - The full-year payout ratio was 68% at the high end of the target range of 60%-70% [8][14] - The company ended 2025 with a combined NAIC RBC ratio of approximately 475%, above the target of 400% [25] Q&A Session Summary Question: Insights on private credit portfolio quality - Management indicated that private credit constitutes about 16% of the total general account, with minimal exposure to software, which is only 1% of the total [35][36] Question: Competition for advisors in wealth management - Management noted that organic growth is strong, with a distinct model attracting new advisors, and emphasized disciplined hiring practices [40][42] Question: Addressing valuation gap between AB and Equitable - Management acknowledged the valuation gap and emphasized the focus on growing the business and improving execution to close the gap [45][48] Question: Mortality exposure and potential reduction - Management discussed the manageable nature of remaining mortality exposure and the potential for further reductions through strategic actions [49][52] Question: Retirement segment commission and distribution expenses - Management explained that commission expenses are expected to normalize over time, with earnings growth anticipated to exceed commission expenses [55][56]

Financial Data and Key Metrics Changes - Full-year non-GAAP operating earnings were $5.64 per share, or $6.21 per share after adjusting for notable items, up 1% over 2024 [6][7] - Full-year organic cash generation was $1.6 billion, consistent with guidance, expected to increase to approximately $1.8 billion in 2026 [8][25] - Assets under management and administration ended 2025 at a record $1.1 trillion, up 10% year-over-year [8][18] - The company returned $1.8 billion to shareholders in 2025, with a payout ratio of 68% excluding incremental buybacks [8][24] Business Line Data and Key Metrics Changes - In Retirement, net flows were $5.9 billion in 2025, a 4% organic growth rate, supported by record RILA sales [9] - Wealth Management saw full-year net inflows of $8.4 billion, a 13% organic growth rate, with a 12% increase in the number of wealth planners [9][22] - AllianceBernstein (AB) experienced overall net outflows of $11.3 billion, but its private markets business increased AUM by 18% to $82 billion [10] Market Data and Key Metrics Changes - The company reported strong momentum in the private markets business, with a target of $90 billion-$100 billion in AUM by the end of 2027 [10] - The institutional pipeline for AB ended 2025 with $20 billion, indicating strong future growth potential [10] Company Strategy and Development Direction - The company is focused on three core growth engines: U.S. retirement, asset management, and wealth management, aiming to refine its business mix [5] - The life reinsurance transaction with RGA is expected to create a more valuable company by reducing mortality exposure by 75% and freeing up $2 billion of capital [11][15] - The company aims to achieve $150 million in expense savings by 2027, with $120 million already in run rate results [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2027 financial targets, with solid momentum entering 2026 [6][31] - The company expects EPS growth to accelerate in 2026, driven by reduced mortality exposure and strong cash generation [15][16] - Management highlighted the importance of maintaining a disciplined approach to expenses and capital allocation to support growth [48][88] Other Important Information - The adjusted book value per share was $33.84, providing a more meaningful valuation than reported book value [19] - The company expects a total company tax rate of approximately 20% and segment tax rates of 16% for retirement, 26% for wealth management, and 28% for asset management [29] Q&A Session Summary Question: Insights on private credit portfolio quality - Management indicated that private credit constitutes about 16% of the total general account, with minimal exposure to software, which is only 1% of the total [35][36] Question: Competition for advisors in wealth management - Management noted that organic growth is strong, with a focus on recruiting experienced advisors and maintaining a disciplined approach to hiring [40][42] Question: Addressing valuation gap between AB and Equitable - Management acknowledged the valuation gap and emphasized the importance of focusing on business growth and execution to close it [45][48] Question: Mortality exposure and potential for further reduction - Management discussed the impact of recent claims and indicated that while the remaining exposure is manageable, they will explore options to further reduce it [49][51] Question: Retirement segment commission and distribution expenses - Management explained that commission expenses are expected to normalize over time, with growth in earnings expected to exceed commission expenses [55][56] Question: Cash flow conversion and underlying drivers - Management confirmed that cash generation is improving, driven by higher asset and wealth earnings, and emphasized the importance of cash flow as a key metric [65][68]

Financial Data and Key Metrics Changes - Full-year non-GAAP operating earnings were $5.64 per share, up 1% from 2024, with notable items adjusted EPS at $6.21 [5][6] - Full-year organic cash generation was $1.6 billion, consistent with guidance, expected to increase to approximately $1.8 billion in 2026 [6][12] - Assets under management and administration reached a record $1.1 trillion, up 10% year-over-year [6][17] - The company returned $1.8 billion to shareholders in 2025, with a payout ratio of 68% excluding incremental buybacks [6][22] Business Line Data and Key Metrics Changes - Retirement segment net flows were $5.9 billion in 2025, reflecting a 4% organic growth rate, supported by record RILA sales [7][11] - Wealth Management saw net inflows of $8.4 billion, achieving a 13% organic growth rate, with a 40% year-over-year increase in fourth-quarter earnings [7][20] - AllianceBernstein (AB) reported overall net outflows of $11.3 billion, but private markets business AUM increased by 18% to $82 billion [8][9] Market Data and Key Metrics Changes - The company experienced strong momentum in the private markets business, with a target of $90 billion-$100 billion in AUM by the end of 2027 [9] - The retirement business is expected to see mid to high single-digit growth in pre-tax earnings, with spreads stabilizing in the second half of 2026 [26][70] Company Strategy and Development Direction - The company is focused on three core growth engines: U.S. retirement, asset management, and wealth management, aiming to reshape its balance sheet to be more capital light [4][10] - The life reinsurance transaction with RGA is expected to create a more valuable company by freeing up $2 billion of capital and reducing mortality exposure by 75% [10][14] - The company aims to achieve $2 billion in annual cash generation by 2027, with a strong focus on organic growth and maintaining a disciplined approach to expenses [12][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2027 financial targets, citing solid momentum entering 2026 and reduced mortality exposure [5][28] - The company anticipates EPS growth to accelerate in 2026, driven by strong cash generation and reduced volatility from mortality claims [13][14] - Management highlighted the importance of maintaining a disciplined approach to investments and capital returns while focusing on growth opportunities in attractive markets [88] Other Important Information - The adjusted book value per share was reported at $33.84, providing a more meaningful valuation than reported book value [18] - The company achieved a 33.7% adjusted operating margin at AB, indicating strong execution on margin initiatives [12] Q&A Session Summary Question: Insights on private credit portfolio quality - Management indicated that private credit constitutes about 16% of the total general account, with minimal exposure to software-related risks [32][34] Question: Competition for advisors in wealth management - The company reported a 12% growth in wealth planners, emphasizing a disciplined approach to hiring and targeting specific advisor practices [36][39] Question: Addressing the valuation gap between AB and Equitable - Management acknowledged the valuation gap and emphasized the focus on growing the business and improving execution to close this gap [42][45] Question: Mortality exposure and potential further reductions - Management discussed the impact of recent mortality claims and the prudent guidance for future mortality assumptions, indicating manageable volatility [46][48] Question: Commission and distribution expenses in retirement segment - Management explained the increase in commission expenses and the expectation of earnings growth exceeding commission expenses over time [53][54] Question: Growth potential of the FABN program - The company expressed optimism about growing the FABN program, which has shown attractive IRRs and contributes to retirement earnings [60][61] Question: Cash flow conversion and underlying drivers - Management confirmed improving cash conversion rates, driven by higher asset and wealth earnings and capital release from legacy blocks [64][66] Question: Competitive dynamics in the RILA market - Management noted the growing demand for RILAs and the company's commitment to maintaining disciplined pricing and strong IRRs despite increased competition [79][81]

Core Viewpoint - OptimumBank Holdings, Inc. has successfully completed a comprehensive modernization of its capital structure, establishing a transparent and high-performance equity foundation to support future asset growth [1]. Group 1: Capital Structure Modernization - The Company has amended and restated the terms of its Series B Preferred Stock to enhance clarity, consistency, and transparency for investors [5]. - The Series B Preferred Stock was unified into a single series, eliminating historical sub-series and simplifying disclosure, which improves comparability and transparency across reporting periods [6]. - The Series B Preferred Stock does not provide dividend income or additional economic participation, and its amendment was aimed at reducing complexity and enhancing financial reporting clarity [7]. Group 2: Institutional Investment and Support - AllianceBernstein has increased its economic exposure to the Company through open-market purchases, direct investments, and conversions of common stock into preferred stock, reflecting long-term confidence in the Company [2][3]. - The conversion of 350,000 shares of common stock into preferred stock allows AllianceBernstein to maintain appropriate governance alignment while increasing its economic stake [3][4]. - The non-voting shares held by AllianceBernstein are fully exchangeable into voting common stock, providing flexibility while supporting the Company's growth [4]. Group 3: Future Growth and Strategy - The Company aims to push past its current $1.1 billion asset milestone, with a streamlined capital structure and strong institutional participation positioning it well for continued growth [10]. - The coordinated efforts between major institutional partners and the Board reflect a unified conviction in the Company's future and its commitment to long-term value creation [10].

Group 1 - Equitable Holdings (NYSE:EQH) is recognized as one of the best financial pure plays under $100, with a bullish rating initiated by Mizuho Securities analyst Yaron Kinar, who set a price target of $66, indicating over 37% upside potential from current levels [1] - Kinar's positive outlook is attributed to a strong preference for life insurance businesses, where Equitable Holdings has a significant presence through a comprehensive suite of products, including Variable Universal Life, Indexed Universal Life, Term Life insurance, and Annuities [2] - As of December 30, Equitable Holdings received coverage from 8 analysts, with 6 assigning Buy ratings and 2 giving Hold ratings, leading to a median 1-year price target of $63, which implies nearly 31% upside from the current market price [3] Group 2 - Equitable Holdings is a leading financial services firm in the United States, providing retirement plans, wealth management, insurance, and protection services, along with a diverse array of products [4]

Market Trends - Municipal bonds are expected to attract investment due to anticipated interest-rate cuts by the Federal Reserve [1] - Investors are predicted to seek alternative investment options as interest rates decrease [1] Expert Opinion - Matthew Norton at AllianceBernstein suggests municipal bonds as a potential destination for investor capital [1]

Core Viewpoint - The impact of the Federal Reserve's balance sheet expansion on the U.S. Treasury yield curve is limited to the very short end [1] Group 1 - Experts from AllianceBernstein indicate that the effects of the Fed's balance sheet expansion are primarily felt in the short-term yields [1] - The analysis suggests that longer-term yields are less influenced by the Fed's actions, indicating a decoupling of short and long-term interest rates [1] - The findings highlight the importance of understanding the dynamics of the yield curve in relation to monetary policy changes [1]

Core Viewpoint - The Federal Reserve's decision to expand its balance sheet and resume purchasing short-term Treasury securities aims to ensure that the banking system has "ample" reserves, with limited impact on the longer end of the yield curve [1] Group 1 - Eric Winograd, Chief U.S. Economist at AllianceBernstein, indicates that the initial target for Treasury purchases will be approximately $40 billion per month [1] - The impact of this decision is expected to be confined to the money market and the front end of the yield curve [1] - Some market participants had anticipated that the Federal Reserve might delay this operation until January of the following year [1]