SocGen continues to underwhelm in capital markets and French retail banking. Drives its growth in Russia and Eastern Europe that is always riskier. Sell on stock and benchmark bond. Very High counterparty/regulatory risk.
DB wants to be a normal bank, but abnormal transformation charges, no real growth thrusters, and a slow slog through its CRU asset disposals makes it an underperformer. Still a Sell across the Capital Stack and Counterparty/Regulatory risk remains Very High. DB DB DB DB DB DB DB DB DB DB DB DB
MS lays down the gauntlet as the wealth management champ seeking to differentiate from its rival GS. Revenue growth opps as it attempts to grab more AUMs from the high net worth fee pool and Asis clients. Buy Stock, Buy benchmark bonds. Medium counterpary/regulatory risk. MS MS MS MS MS MS MS MS MS MS MS MS
Barclays had a good quarter as Brexit quagmire swirls in the UK. Capital markets punch, but some one-offs. Still, the strategy is taking hold with better performance. Buy Stock, Buy benchmark Bonds. Counterparty and Regulatory risks still too high. Barclays Barclays Barclays Barclays Barclays Barclays Barclays Barclays Barclays Barclays Barclays Barclays
WFC gets a new CEO in a week so the strategic vision is still to be determined. Still, the bond market has tightened spreads and the equity is still where it was. We believe that there are still hard years ahead and the bond markets are ahead of themselves. Sell benchmark bonds, Sell Stock. Medium counterparty risk. WFC WFC WFC WFC WFC WFC WFC WFC WFC WFC WFC
RF shows good rates hedging instincts which it uses to preserve its cheap core deposit value. Still, it needs to pick up economic earning yields which is difficult in its slow growth natural franchise. Still a Sell on Stock, Bonds fair value, Counterparty Risk is Medium. RF RF RF RF RF RF RF RF RF RF
CFG has some good geography, but has lots of tough competitors. Its a patchwork of acquisitions and newer product sets. Margins may be more pressured with less oportunisitc hedging. And economic earnings are a laggard for last 5Y trend with little improvement in sight with rates falling. Sell the Stock, Bonds attractive, Medium counterparty risk.
FITB tried to convince the Barclays conference audience that it has control over its NIMs. We beg to differ and look for more slippage in 2020. Sell Stock and benchmark Bonds, Low counterparty risk. FITB FITB FITB FITB FITB FITB FITB FITB FITB FITB
WFC made another limp presentation as investors in the audience get frustrated with the lack of a CEO and more credible strategic plan. Rate risk is putting addtional pressure on revenues with no real offsets except expense savings. Still a Sell on Stock & benchmark bonds. Counterparty risk managers should continue to reduce exposures. WFC WFC WFC WFC WFC WFC WFC WFC WFC WFC WFC WFC
MTB has been a bank with steady and superior results over the years. We launch coverage and look at its hedging strategies as interest rates decline putting pressure on is floating rate CRE loan book yields. Initiate with a Buy on its Stock, a hold on its benchmark 4 year bonds. Counterparty/regulatory risk is Very Low. MTB MTB MTB MTB MTB