Is the market overreacting to short term fear?https://t.co/j5k1w0OIFR ...

Group 1 - The article discusses the role of buy-side hedge professionals who conduct fundamental, income-oriented, long-term analysis across various sectors in developed markets globally [1] - It emphasizes the importance of sharing ideas and engaging in discussions among professionals in the investment community [1] Group 2 - The analyst has disclosed a beneficial long position in the shares of specific companies, indicating a personal investment interest [2] - The article reflects the author's own opinions and is not influenced by compensation from any company mentioned [2] Group 3 - Seeking Alpha clarifies that past performance does not guarantee future results, highlighting the inherent uncertainties in investment [3] - The platform does not provide specific investment recommendations and notes that opinions may not represent the views of Seeking Alpha as a whole [3]

Regional Bank Strength & Risk Management - Regional banks are in the business of taking risks, planning for credit losses with reserves against potential loan defaults [2] - Conservative lending practices are observed in the marketplace, even concerning loans to non-depository financial institutions, which represent a small segment of most portfolios [5] - Low levels of non-performing assets are currently observed [5] WAFED's Financial Position - WAFED reported net charge-offs of only 006% (six basis points) for the last fiscal year [6] - WAFED maintains a reserve of 104% (104 basis points), sufficient to cover loan losses for 17 years before impacting capital [6] - WAFED sold approximately 28% (2.8 billion) of its commercial real estate (CRE) portfolio a year ago at book value, indicating liquidity in the system [12] Market Outlook & Potential Concerns - Rising floating interest rates (up 500 basis points) may cause stress for some borrowers [8] - Overreacting and selling regional banks at the first sign of weakness could represent a buying opportunity for informed investors [10] - Investors and banks should assess exposure to non-depository financial institutions [2]