But if it goes down, there will be consequences."Ĭorrection: This article has been updated to correct that the KBW Bank Index does not trade in the premarket. "We could be at AA- for the next 10 years. "It's not inevitable that it goes down," Wolfe said. Downgrades could also trigger unwelcome provisions in lending agreements or other complex contracts. Stock Market Quotes, Business News and Financial News from the leading provider, wholly-owned subsidiary of Dow Jones & Company, Inc. A Nasdaq listing includes an obligation to disclose to the MarketWatch Department information that the Company is not otherwise disclosing to the investing. They even expressed concerns some banks could get locked out of debt markets entirely. Follow this list to discover and track the stock of publicly traded companies with exposure to cannabis. In the wake of the recent Moody's cuts, Morgan Stanley analysts said that downgraded banks would have to pay investors more to buy their bonds, which further compresses profit margins. 164.31k followers 21 symbols -0.07 Watchlist by Yahoo Finance. At Yahoo Finance, you get free stock quotes, up-to-date news, portfolio management resources, international market data, social interaction and mortgage rates that help you manage your financial life. The impact of such broad downgrades is hard to predict. "But if we're exceeding, that's what maybe tips us over." "That shouldn't be shocking or alarming," he said. Defaults tend to rise in a rate-hiking environment, and Fitch has expressed concern on the impact of office loan defaults on smaller banks. Intraday data delayed at least 15 minutes or per exchange requirements. "What we don't know is, where does the Fed stop? Because that is going to be a very important input into what it means for the banking system," he said.Ī related issue is if the industry's loan defaults rise beyond what Fitch considers a historically normal level of losses, said Wolfe. stock quotes reflect trades reported through Nasdaq only. DJIA -0.80 COMP -0.62 Don’t wait for Fed rate cuts, says debt buyer to banks holding distressed commercial real estate DJIA -0.80 SPX -0.76 S&P 500 soared near ‘tipping point’ in 2023. Higher rates for longer than expected would pressure the industry's profit margins. Some market forecasters have said the Fed may already be done raising rates and could cut them next year, but that isn't a foregone conclusion. In terms of what could push Fitch to downgrade the industry, the biggest factor is the path of interest rates determined by the Federal Reserve. Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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