GS had an impressive record year, but a thud of a quarter. Mostly in less stable windfall businesses in equity & debt investments. Still, it has the most volatile revenues of the group, which it is seeking to lessen with various infrastructure and external investments. Continue Buy on stock and benchmark bonds. Systemic and counterparty risks remains Low.
Citi always keeps us on our toes as it continues to blow away its own toes. Add Mexico retail to the trash bin of businesses jettisoned as the it desparately looks for focus and capital fodder for its yet again rejuvanation. Netural on stock, Sell on benchmark bonds. Systemic risk high and counterparty Medium-to-High.
Big regionals waiting for the Fed to hike rates to garner NIM/NII benefits to EPS. Loan growth still sluggish, but should pick up with economic improvement. Buy on USB & PNC stocks. TFC has good bond relative value. Still waiting on COF earnings, but its economic earnings compare favorably.