Canadians at the Gate
Why investors should beware the strategies that drive Canadian banks.
Stock Strategist
Mentioned: TCF Financial Corp (TCF)
, Bank of America Corp (BAC)
, First Midwest Bancorp Inc (FMBI)
, Truist Financial Corp (TFC)
, Commerce Bancorp, Inc. (CBH)
, JPMorgan Chase & Co (JPM)
, Canadian Imperial Bank of Commerce (CM)
, Bank of Nova Scotia (BNS)
, The Toronto-Dominion Bank (TD)
, Royal Bank of Canada (RY)
The drums of war are beating these days on Bay Street (the Canadian version of Wall Street). Armed with their high-flying stocks and "at-parity" currency, Canadian banks are set to conquer the U.S. banking market.
Not that anybody in the United States will stand in their way. Although some pundits mourn the fall of Commerce Bancorp (CBH) to Toronto-Dominion (TD), U.S. investors are generally more than happy to sell banks, especially if offered a nice premium. After all, the banking sector hasn't been the market's darling lately (to say the least). If the Canadians want to take a stab at it, they are more than welcome.
Michael Kon has a position in the following securities mentioned above: BAC. Find out about Morningstar’s editorial policies.