So we have got nice bounces in some of the banking preferreds off their lows–i.e. First Republic (FRC) and Customers Bank (CUBI). As I mentioned earlier the ‘brave’ step in and buy and reap the benefits. From the comments section I see we had some ‘brave’ folks–no surprise. I hope folks didn’t panic out at the lows–I know it has been painful for many and one is always tempted to sell out at the bottom, but it seldom is the correct move (although if the FDIC seizes the bank that is a different story).
In a simple point of view one would guess that with the Fed stepping in with liquidity that all would be fine–NOT. This will take weeks if not months to finally all play out–hardly ever do they play out in a day or two.
If you have been hunting CDs today the offerings from the big banks no longer exist (at least on FIDO)–I suspect they have sold enough of them for now and we will see lower rates when we see them again. There are quite a few offerings from banks I have never heard of–I guess they are probably alright to own, but for now I will just collect money market interest.
Don’t unbuckle your seat belts just yet–we have CPI and PPI yet this week so there can be plenty of ‘excitement’.
To peruse the bank preferred carnage go here.