TD Bank should be shopping for GE Capital assets — if it isn’t already

Toronto-Dominion Bank ought to be shopping for assets following General Electric\’s surprise decision to cast of most of its financing business GE Capital Corp., according to analysts at National Bank Financial.

\”With GE\’s announcement, TD may have the opportunity to purchase higher yielding assets, fund them with the bank\’s low-cost deposits – and thereby offset some of the pain made by the Federal Reserve\’s monetary policy,\” analyst Peter Routledge wrote in a note to clients Monday.

The analyst said the Canadian bank paid reasonably limited price to acquire a large deposit base in the United States through its retail operation there, but the current \”flat and depressed\” yield curve means multiplication TD earns over the cost of its deposits has become very low.


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