All articles tagged with #credit stress
Global stocks declined due to US regional bank jitters, with bank shares falling sharply and gold reaching a new high as investors sought safe havens amid credit stress concerns, while oil prices and the US dollar also experienced declines.
U.S. regional bank stocks declined following Zions Bancorporation's announcement of a $50 million loss due to fraudulent loans, highlighting concerns over credit risk and risk management amid recent bank bankruptcies and fraud allegations, with some banks like Western Alliance taking steps to reassure investors.
The cost for Wall Street banks to insure bonds against default has surged, indicating credit stress for investors amid the crisis at Credit Suisse and U.S. regional banks. Spreads on five-year credit default swaps on JPMorgan Chase, Bank of America, Morgan Stanley, and Wells Fargo have shot up to their highest since October, while those for Goldman Sachs and Citigroup are highest since November. Financial stocks and bonds have shed hundreds of billions of dollars in value since SVB Financial Group and Signature Bank rocked global markets.