Company Reports

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

New JPMorgan earnings note and tearsheet format for the entire Stakeholder Stack. JPM posted record results as it deals well with DC grid-lock on regulatory reform, and low volatility in capital markets. Auto loans and credit card charge-offs still contained. Buy on Stock, Sell on 10Y benchmark debt. JPM JPM JPM JPM JPM JPM JPM

WFC still operationally reacting to sales practice scandal as it announces an expense intitiative that will save $2 billion per year by 2018. Auto loans tightened credit standards, but growth slowed in 2Q. Still a Strong Buy on debt & equity stack given strong valuaiton signals. WFC WFC WFC WFC WFC

​The card player banks/fincos are starting to feel the credit costs again in their big card books. Still, some have weathered well in other cycles, while others are more newly minted. Buy Stock in AmEx, COF, Discover; Sell Synchrony. Mixed bag on bonds and risk-reg relatively tame. COF COF COF DFS DFS DFS AXP AXP AXP SYF SYF SYF DFS