Wednesday, July 23, 2008

Wachovia (WB) vs Wahsington Mutual (WM)

--WM is in a worse position than WB in terms of its asset quality and credit loss --Nearly 80% of WM's book is exposed to risky assets while WB has much less share of book exposed to risky assets, ~50%. Furthermore, WB loan is more divierersified. --WM has reserve less share for its NPA, ~56%, than WB does, ~90% --WM has a lower Tier 1 capital ratio, 7.8%, than WB, 8% opinion --underweight WM

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