Sterne Agee Reports CIT Group to Pay More Debt

According to Sterne Agee's report on CIT Group Inc.

, the company will continue to pay off $500 million in 7.000% notes moving them towards an ROE of 8%+. Sterne Agee stated, “This will result in the company booking an additional $20 million in FSA related amortization, against interest expense in the second quarter, a non cash item. A portion of this should be offset by gains from asset sales.” Sterne Agee upholds a Buy rating with a $50 PT, which closed Friday at $41.09.