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Thursday, June 9, 2016

Charts - $bac updated

The 10yr yield correlation slowly breaking with bac having a premium.


Makes sense given the risk to tangible book value has significantly mitigated this quarter. Oil is at 9-12 month highs, and consequently so are Junk bonds.





The expectation is that tangible book remains in tact at 16.20. If tbv continues its 2yr trend, it should increase a bit.

While treasuries are depressed, GDP Now is still elevated at 2.5%. And bac is trading 12% below tbv.




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