The big banks are reporting today and so far all of them that I have seen are beating lowered expectations–so far higher interest rates have not brought the world to an end. I think that we are a few quarters away from seeing banks taking large write downs on commercial real estate–the refinancing that are taking place will be spread across a multi year time frame so some level of pain will continue most likely for years. Investors would do well to read through the earnings reports of the large banks (which I haven’t done yet–but will) to get a flavor of where we are going. Most smaller banks report toward the end of the month.
Interest rates this morning remain low relative to last week–the 10 year treasury is at 3.77% after the below expectations producer price numbers yesterday. Of course the FOMC will still raise rates in about 2 weeks–the markets expect it so they will get it.
I will be looking more broadly through income issues this weekend–looking for buys. I am not seeing anything obvious–anything we can garner a nice capital gain from (like Jackson Financial – JXN) although just maybe JXN is one of the best deals out there simply for the 8% yield?