The Globe and Mail reports in its Monday, Aug. 3, edition that CIBC Asset Management portfolio manager Craig Jerusalim has been lightening up on Canadian banks. The Globe's regular columnist Brenda Bouw writes that Mr. Jerusalim says Canadian banks are firing on all cylinders: margin expansion, booming wealth management franchises, strong capital markets activity and benign credit. Moreover, he says the Office of the Superintendent of Financial Institutions further strengthened the sector in June by reducing the domestic stability buffer, which increased capital available for lending and investments, ultimately fostering additional growth. Mr. Jerusalim says: "This all sounds great except that the group is priced for perfection and any hiccup could lead to profit-taking. The Big Six Canadian banks, as a group, are now trading at a forward price-to-earnings ratio of about 16 times, which is significantly above their U.S. peers and well above their peak valuation from before the financial crisis. So, while we still maintain significant exposure across our strategies and we're bullish long-term, we've now moved to a modest underweight for the group."