KRE ETF – are banking risks resurfacing?

4 thg 10, 2023

While the Fed’s Bank Term Funding Program (BTFP) has been a key factor in supporting bank equity, the rapid rise in US Treasury bond yields is a concern, and so is the exposure to Commercial Real Estate (CRE). We can see CRE benchmarks rolling over of late and heading lower and this is keeping investors from buying into regionals. One for the radar, but if we see the price continue in the current trajectory then it could see signs of greater risk aversion kicking into markets. Staying in the ETF scene, I am also watching the HYG ETF (iShares High Yield Corp ETF) given we see that falling sharply but seeing some extremely oversold reads.