did you buy regional banks last year or are you thinking of buying any now? I am thinking more about future earnings than solvency issues. it is unlikely all these regional banks go under so there should be some good deals available. would like to know what you think.
here is one article today:
Battered regional banks got a vote of confidence from the one-time king of the bond world. In his investment outlook published Friday, Bill Gross, the former chief investment officer of Pacific Investment Management Co., said he’s purchased stocks including Western Alliance Bancorp, Synovus Financial and PacWest as well as the SPDR S&P Regional Banking ETF. Following a series of bank failures in early March, shares of small lenders have slumped, trading at a discount of about 60% of the value of their net assets. That, together with a return-on-equity of around 10%, provides “an enticing long-term investment,” according to Gross, who retired from asset management in 2019. “I’ve always told myself and close friends that I wish I could start a bank,” wrote Gross. “It’s a license to make money.”
bloomberg.com |
