Company Reports

DB or not to DB, that is the confusion? Whether tis nobler in the mind to suffer the slings & arrows of outrageous equity rights offering fortune. Or to take arms against a sea of operating earnngs troubles. Strong Sell Stock & Bonds. DB DB DB DB DB DB 

USB has been the steadiest regional bank performer for the last 20 years. Still, it may have to boost its capital markets activities to get into the big leagues so that economic earnings are reignited. Buy Stock, Sell Debt. USB USB USB USB USB

KEY still up to its old M&A tricks as it slices-n-dices its upstate NY's expense base and counts it as synergistic earnings. Really, it destroyed ~$4B of economic book value showing the weak core franchise. Sell Stock & Bonds. KEY KEY KEY KEY KEY

COF keeps tip-toeing through credit minefields as its large below prime auto & cards have yet to crack. This card cat has more than 9-lives and should be able to squeeze by. Still we are Sell on Stack, debt & equity. COF COF COF COF COF COF 

AmEx is adapting to the competitive super-prime card landscape with more rewards, but also going down-market to prime revolvers and business cards. So, latent credit risk rising. Buy on Stock, Sell on 5Y sr. debt, but 10Y sr a Buy. AXP AXP AXP AXP amex amex amex amex

GS got creamed in FICC trading, but hit pay-dirt in private equity gains. Question is whether it can reinvent its platform to create more operating leverage via electronification. We say yes. Buy Stock & Bonds. GS GS GS GS GS

MS has been on a roll the last 2Qs as it has overtaken its arch-nemesis GS. Question is whether this is the new normal in rankings or just some temporary lift. Buy Stock, Sell 10Y senior debt. MS MS MS MS MS MS MS MS morgan stanley morgan stanley morgan stanley morgan stanley

Citi continues to make turnaround progress and the CCAR big gift on shareholder payouts should continue to drive stock. Bonds look attractive too against the huge tightening in bank sector. 

BAC sees more progress across consumer, wealth mgt. and banking & trading. Still NII nipped by higher rates as swaps book and MBS concentrations weigh. Buy Stock, Sell 10Y Sr. BAC BAC BAC BAC

PNC has the best risk-return combination of the major regional banks, with more upside in the stock than the debt. PNC PNC PNC PNC PNC PNC PNC PNC