All articles tagged with #contagion
Rising U.S. debt levels and Treasury yields pose risks not only to the American economy but also threaten to trigger contagion across global markets, especially as demand wanes and supply increases, with potential spillover effects in bond markets worldwide, according to the Institute of International Finance.
Rising U.S. debt levels and Treasury yield volatility pose risks not only to the American economy but also to global markets, potentially triggering contagion effects across bond markets worldwide, especially as investor demand wanes and supply increases, with emerging markets feeling the impact due to interconnected financial systems.
The recent failures of regional banks have raised fears of contagion and curtailed their lending activity, leaving a huge swath of commercial real estate (CRE) investors struggling to find money. Small and midsized banks are the financial backbone of CRE investing, but they are facing a reduction in their real estate exposure due to the leakage of deposits. With more lenders out of the market, less liquidity means CRE values will continue to be pushed downward. Some regional banks may turn to the securitized market to free up their balance sheets of CRE debt.
First Republic Bank is exploring strategic options including a sale to shore up its liquidity, following a rating downgrade by Fitch and S&P citing risks to its funding and liquidity. The troubled bank is expected to draw interest from larger rivals, and its shares have slumped on fears of a bank contagion following the collapse of SVB Financial Group and Signature Bank.