John ZechnerCanadian Imperial Bank of CommerceCM.TOBUY ON WEAKNESSJun 18, 2021

No, though it's cheap vs. the other banks. In this market, having a good dividend yield of 5.6% is worth a lot. If interest rates fall, the banks will get squeezed in their net interest margin. There are concerns over outstanding loans. But overall, the banks look attractive and CIBC is especially cheap. He likes Royal too.

CIBC was under the most pressure during the interest rate hikes, but now it's rebounded 26% off the bottom, the strongest bank performer. It will continue to rise. Peers like TD and RY have a big US presence, so if you want that CIBC doesn't offer it. Owns CIBC as a valuation trade. The dividend is safe. Lower rates will certainly help CIBC.

Expecting a decent year from company. Canadian banks difficult to predict, but overall a strong sector. Safe regulations and industry standards. Lower interest rates will be good for business. New management strong and would recommend buying. 

Expecting growth in sector in 2024, however business has headwinds facing it. Not great metrics and costs have been high. Better options for investors in sector and elsewhere in markets. 

Believes Canadian financials will catch up in 2024. Would be a good time to buy small position. Won't be a major capital gain, but is not pessimistic about sector anymore. 

Not overly impressed with the chart. Has other bank names. Does not like Canadian banking sector overall. Believes troubled times ahead for Canadian banking with mortgage renewals, and higher interest rates. 

All banks are down 25-30%. CIBC is most exposed to housing mortgages. Banks pay a high yield, 7.1% by CIBC, which is huge for banks. Worries are a recession or housing weakness. But the Canadian banks enjoy an oligopoly. Canadian banks are okay short-term as they enter seasonality now.

He's been watching this closely. His metrics show that last week that the market no longer trusts their balance sheet (the chart fell below previous support levels). Of the big five, this is the first to go into "blue".

Canadian banks very attractive. Currently trading at ~9x earnings. ~7% dividend yield is exceptional. Very strong wealth management business. Good for long term investors. Expecting double digit return going forward. 

Does have global operations, but more domestically inclined. Gained a lot of market share in the mortgage market, and that's where we might see an uptick in provisions at these rates. Yield is 6.8%.

As interest rates have gone up, yield stocks have been pushed down considerably. Sizeable mortgage exposure, so provisions for credit losses are attracting attention. Attractive here. Company is not going away. Expense ratio going down. Yield is 6.7%.

Likes preferred option with 8-9% yield. Owns shares in company - expecting recovery in next 5 years. ~7% yield is excellent yield. Owns shares and has been buying. 

All of the interest sensitives have been under pressure the last couple of months with rates rising.

He favours TD. Tightly regulated oligopoly, and a levered play on the growth of the Canadian, and increasingly US, economy. Surplus of excess capital. 10x earnings. Dominant personal and commercial banking franchise. Good-sized banking presence in the US. Shares are at a discount to average. Close to 5% yield, growing at 8% compound over 10 years.

Valuation and yield of SLF are similar to TD. But TD's competitive position in its industry is more advantageous than SLF.

Compared to CM, TD is more of a scale player with a stronger franchise on both sides of the border on its core banking business.

Has had a lot of issues over the years, but he thinks things have improved. At the end of the day, all the banks are starting to show increasing loan losses.