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If rising interest rates were good for regional banks (KRE -1.6%), than falling rates must be...

If rising interest rates were good for regional banks (KRE -1.6%), than falling rates must be bad? The regionals are notably in the red despite a broad market advance this morning. The stocks cruised right through the June rate fright, but are lower this week ahead of earnings, as analysts turn cautious given their now-pricey valuations, and as interest rates slide. Huntington (HBAN -1.5%), Regions (RF -3.1%), BB&T (BBT -1.1%), Hudson City (HCBK -1%), SunTrust (STI -1.7%), Fifth Third (FITB -0.2%), KeyCorp (KEY -2.1%), Zions (ZION -2.2%).
Comments (2)
  • Classic!
    11 Jul 2013, 10:34 AM Reply Like
  • I think that once the earnings are out these stocks will bounce back. Economy is improving and loan demand will pick up increasing spreads. Regionals will unload portions of their bond investments for C & I and Real Estate loans as the economy prospers. Goldman predicts large improvement in housing starts which will also be a driver. And then there is the possibility of consolidation with stocks like SNV. Hang on and let the internals drive valuations and not the FAST MONEY crowd.
    11 Jul 2013, 11:02 AM Reply Like
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