(Bloomberg) - Bill Gross believes the “regional bank falling knife has hit bottom,” suggesting that it’s no longer dangerous to invest in regionals, and deviating from his recent statement that he wanted to wait a little longer before purchasing.
The co-founder and former chief investment officer of Pacific Investment Management Co. is buying Truist Financial Corp., Citizens Financial Group Inc., KeyCorp and First Horizon Corp., he wrote in a post on X.
On Oct. 30, Gross suggested that regional banks have “extraordinary long-term value,” but was waiting to own some of them at 60% of book value and 7% yields. A week earlier, he said he saw a US recession in the fourth quarter.
In his latest post, Gross added that the best strategy for traders navigating an “uncertain” Treasury yield picture is “to invest in the 2/10 curve continuing to disinvert” and predicted it will go positive over the next six months.
By Lara Sanli
