Dallas-based Comerica (NYSE:CMA) has a long history of profitability and holding conservative levels of capital reserves. This may explain why the company has a slightly rich valuation. The bank has been showing good revenue momentum in recent quarters and consistently increasing earnings over the last few years. At the same time though, the company is heavily exposed to the current low interest rate environment. Many of Comerica's loans are benchmarked to floating interest rate measures, especially LIBOR. Back in December, I might have viewed this as a positive, in that it means Comerica will benefit greatly once interest rates eventually start to rise. The recent dovish tone of Janet Yellen, and the frankly abysmal economic data of late...
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