Regional banks have been outperforming the KBW bank index in the last month, and Craig Siegenthaler, analyst at Credit Suisse, said the following regional bank names are best positioned in the face of possible bad news.
“The issue is excess liquidity. We think banks, if you roll forward 6 months, will have less excess liquidity than they think they need—and this will increase deposit competition,” Siegenthaler told CNBC.
SVB Financial —“They are very well positioned with a lot of excess liquidity and well positioned for a stronger economy,” he said. “There could be a lot of EPS revisions involved in this name.”
Zions Bank —“They also have a lot of excess liquidity.”
Asset managers are even better positioned than banks, he believes.
Invesco —“Very well-positioned from a net-flow and income statement perspective for a lot of the re-risking trends we’ve been seeing,” Siegenthaler recommended.
Scorecard—What He Said:
- Siegenthaler's Previous Appearance on CNBC (Dec. 16, 2010)
More Market Intelligence:
- Charts: Near-Term Selling, Then 'Attractive' Opportunity
- The Inflation Trade Now: Portfolio Manager
- Cramer: Buffett's Next Buy Could Be a Pipeline
CNBC Data Pages:
More Regional Banks:
Fifth Third Bank
Siegenthaler has investment banking clients who own shares of SIVB, ZION and IVZ.