I continue to be impressed by how Canadian Western Bank (CBWBF) (CWB.TO) management addresses the challenges facing this small commercially-focused bank, even if some of the challenges are self-inflicted. While I thought the shares looked more than 20% undervalued when I last wrote about the shares, I'm a little surprised that the shares have done well since then (up close to 25%) given how negative sentiment has been for much of the past year.
Macro headwinds are accelerating; NIM compression looks probable, credit losses are likely to increase, Canada's economy is slowing,