DGRS - Reviewing Our Exposure To Small And Mid-Cap Regional Banks
2024-03-22 14:20:00 ET
Summary
- Though U.S. equity markets are at all-time highs, regional banks remain mired in the fallout from last year’s crisis that felled several companies in dramatic fashion.
- Poor sentiment remains a headwind for small and mid-cap equity indexes, which have notable allocations to regional banks, despite broader equity market strength.
- Despite the pessimism pervading the industry, we believe there are still ways to maintain exposure to regional banks within small and mid-cap equity allocations without suffering drastically poor performance or sacrificing business quality.
By Brian Manby, CFA
Though U.S. equity markets are at all-time highs, regional banks remain mired in the fallout from last year’s crisis that felled several companies in dramatic fashion.
Silicon Valley Bank’s failure in March 2023 stoked panic selling across the sector amid fears of contagion and prompted scrutiny of other banks’ liquidity positions and asset-liability profiles....
Reviewing Our Exposure To Small And Mid-Cap Regional Banks