Market MalaiseI think the market is really focused on the risk of mortgage defaults with raising rates and potentially declining house prices. Of course while the market is supposed to be a forward looking mechanism it generally works in reverse assuming whatever happened will continue to happen that way.
In the case of CWB with western Canadian focus and a large amount of equipment lending the underlying assets are likely less risky than other big banks. RY for example has a lot of Ontario real estate as well as oil patch lending. I think we are close to support for CWB and this is an excellent entry point, especially as I see interest rate drops as early as Q3 23 as the economy buckles under AI driven deflation and 16 year high interest rates.