Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Bullboard - Stock Discussion Forum Canadian Banc Corp T.BK

Alternate Symbol(s):  T.BK.P.A | CNDCF

The Companys investment objectives are (i) to provide holders of Preferred Shares with cumulative preferential floating rate monthly cash dividends at a rate per annum equal to the Prime Rate plus 0.75%, with a minimum annual rate of 5.0% and a maximum annual rate of 7.0% (ii) to provide holders of Class A Shares with regular floating rate monthly cash distributions targeted to be at a rate per... see more

TSX:BK - Post Discussion

Canadian Banc Corp > Well this isn't good
View:
Post by Obscure1 on Aug 08, 2023 11:28pm

Well this isn't good

Moody’s has put the credit ratings of six large US banks, including Bank of New York Mellon, State Street and Northern Trust, under review for a possible downgrade, sending stocks tumbling as investors worried about more banking sector pain ahead.

The credit ratings agency said late Monday that its warning on the three banks reflected “ongoing strain” in the US banking sector, including increased pressures on funding and potential “weaknesses” in the amount of capital lenders are required to hold.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

BK has the 6 big Cdn banks in its portfolio accounting for about 70% of assets.  BK has about 15% cash and another 15% invested in the 5 biggest investment banks in the US (props to EdP for the update).  

The threat by Moody's to downgrade the large invest banks shouldn't be a surprise to anyone and as I mentioned before, has likely already been baked into share prices for the most part. 

Let's say the market smacks the US investment banks by 10% on the news. I don't think it will happen, but what do I know?  Ten percent of 15% equates to a downward move in Unit NAV of BK of about 1.5% or $0.20.  I don't see the Cdn banks getting torched on the news but who knows. 

Not a big deal IMO, but the market typically runs on emotion until clearer heads prevail so we might see a bit of a run on the NAV this week. I hope so as I'm still buying as the banks ALWAYS find ways around rule changes or to use the rule changes in their favour. .

Comment by navgod on Aug 09, 2023 8:19am
the US banks in BK are not under review ie the too big to fail. will have little or no effect
Comment by Obscure1 on Aug 09, 2023 10:12am
Agreed. That's why I wrote:  "Let's say the market smacks the US investment banks by 10% on the news. I don't think it will happen, but what do I know?" In the meantime, BK is up $0.12 to $13.17 this morning.  Go BK.  I feel like a cheerleader but cycling legs are not a good look with pom poms. 
The Market Update
{{currentVideo.title}} {{currentVideo.relativeTime}}
< Previous bulletin
Next bulletin >

At the Bell logo
A daily snapshot of everything
from market open to close.

{{currentVideo.companyName}}
{{currentVideo.intervieweeName}}{{currentVideo.intervieweeTitle}}
< Previous
Next >
Dealroom for high-potential pre-IPO opportunities