Subprime Debt Exposure

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So today CIBC announces their subprime debt exposure today. It's anybody's guess as to how big their write down will be. Analysts are predicting upwards of 1 billion dollars. As a result, I'm expecting Canadian Financials to take a moderate beating today. As I stated earlier, I believe you need to pick and choose which Canadian Financial Stocks to be exposed to.

Those companies that do not have signficant exposure in the USA are good bets. Scotia Bank is one such bank that comes to mind. They have significant operations in latin America - which comes with more geopolitical risk. However, since the aren't exposed to subprime, when that stock gets beaten down with the rest because of subprime worries, I see it as a prime time to get some BNS action.

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