NYCB makes profits off of the spread between what it needs to borrow at and what it can lend at.
It has an advantage over many other banks in that its default rate on loans is comparatively low.
It has a disadvantage compared to some other competitors in that it doesn't have large amounts of savings deposits which pay very low or no interest, so it needs to go to the marketplace and borrow.
If the yield curve steepens then NYCB could possibly benefit, but only if it takes risks and borrows short term money and lends it long term. If it matches its assets and liabilities then it will immunize itself from that risk but will not benefit from the steepening curve. However, if the long end of the curve rises (independent of the short end, and not a yield curve issue per se), then NYCB should benefit as one would expect their spread, and hence their profit margins, to widen proportionately.
If anyone sees problems with this analysis please reply - thanks!
Sells calls on bonds? Really?
Sentiment: Strong Buy
I will no longer post here///
it was suggested when NYCB hit $17 to sell covered calls; wasn't it?
rule 72...Divide yield into 72 - how many years it takes to DOUBLE your money.
12 years if you reinvest the dividend
I started buying this stock at $8 and continued to buy up to $16. 10 years ago it was a bad time to buy as a growth stock, but 5 years ago it was a great time to buy. Forecasting and fuzzy math aside, if you think that the economy is getting better and the housing market is recovering, then the banking sector should be getting stronger, and NYCB is one of the best run banks.
I am disappointed in the MMs in that the fearless can't seem to drag this down where I can buy more for less than my last added position of $15.45 .
It's true.. the market is a scam.. this stock, by all manipulation standards, should be in at least the 14's.
After taking out the soon to come divi - buying yield at a great price. This should give me a nice 2 month investment between the divi and the buy price. I have a core that I don't trade but this is an add to my core.