Bank Earnings Season Sparks Interest in Regional Lenders and Soft Landing Thesis.
The Oakmark Fund, a value-focused fund with $15.5 billion in assets under management, has recently bought shares in Truist Financial, one of the largest regional banks in the US, and Kroger, the number-two grocer behind Walmart. The fund manager believes that Truist's reputation, relationships, and liquidity profile will allow it to weather the storm without material negative impact, while Kroger's store footprint, distribution infrastructure, technology investments, and strong brand all position the company well for a world with higher online grocery adoption. Bank earnings season has arrived, and there are concerns about how well banks have done in retaining deposits that otherwise are flowing into money-market funds, and how far the bonds they have bought have dropped in value as interest rates have climbed.