KeyCorp: The Unexpected Comeback of a US Regional Bank

After years as an "interest trap," the bank is going on the offensive thanks to a radically restructured balance sheet and returning interest margins – a turning point that could trigger a re-rating. The stock remains cheaper than many quality peers when measured by tangible book value; planned buybacks could further narrow the valuation discount. KeyCorp was long regarded by investors as the classic US regional bank "interest trap": solid in operational terms but trapped in a low-interest bond portfolio at the stock market, while refinancing...