Company Reports

TFC: Stuck Between a Merger and a Pandemic

Truist loaded up on perpetual preferred stock YTD to keep the regulators at bay as it deals with merger cost savings delays and an overleveraged balance sheet going into pandemic. Catching up on all fronts. Still commond dividend may be more at risk versus other big regionals. Sell Stock and benchmark Bond, Preferred stock fully priced. Very Low regulatory risk and Low counterparty risk. 

Industry Reports

Regions Financial: M&A Mahjong: Who Shall Meld?

Regions Financial continues to stay independent as the latest PNC action bypassed it. We analyse and update our regional bank M&A stratego to see why and when it will be purchased. Seems like a while. Sell capital structure (equity & debt) and counterparty & regulatory indicators are High risk. 

Topic/Theme Reports

PNC Buys BBVA USA: Motivated Seller, Cash Rich Buyer

PNC pulls the trigger and bags BBVA USA as the stars aligned for both. Still it shows that other big and weaker US regional banks not as motivated to sell hoping for vaccine relief and resumption of normal economics. Sell on PNC capital structure (stock and bonds) and counterparty and regulatory risk is Low.