Canadian Western Bank update September 4, 2016

Canadian Western Bank is updated and rated Buy at $26.46. While there is always a chance that this bank could suffer very harmful loan losses, the bank is not expecting this to be the case and overall appears to represent a good risk/reward. These shares are up 13% in 2016 but remain well below their historic peak of $43 which occurred two years ago.

The Canadian Western Bank Series 5 preferred shares are also updated and rated Buy at $18.25 to yield 6.0% (But they are projected to reset at 4.7% if interest rates and their price were unchanged in April 2019). These shares have gained 9.9% since we rated them a (higher) Buy at $16.61 on March 13.