When companies report financial results, analysts tend to make comparisons to the year-earlier quarter. But there are times when sequential improvements can be telling.Below is a screen that shows which U.S. banks are expected to show the greatest improvement in interest-rate spreads over the next four quarters.
According to Christopher McGratty, head of U.S. banking research at Keefe, Bruyette & Woods, capital-markets revenues at the largest U.S. banks are now “clearly in a recession.” By the limited information above, it would seem Comerica was flush with cash heading into the Federal Reserve’s round of increases for short-term interest rates and its policy change to allow its securities portfolio to begin running off, which has pushed bond and loan rates higher.
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