The spread of a new generation of credit protection agreements among US banks is likely to outlive cyclical factors that have spurred their adoption in recent years. Credit-risk transfers — well-established in Europe — have helped a growing number of US banks strengthen capital during a time when rising interest rates were hammering the fair value of loans and bonds and doing t...
READWeak loan growth is posing a headwind once again as US banks get ready to post third-quarter results, with hopes still hanging on rate cuts to spur credit demand in future periods. Loans across domestically chartered US banks inched up just 0.4% from June 26 to Sept. 25, according to weekly data from the Federal Reserve, and were up 0.5% after seasonal adjustment. Bank credit g...
READOverdue commercial real estate loans ticked up further as acute stress in the office sector continues to work its way through bank portfolios. The delinquency ratio for commercial real estate (CRE) loans across US banks rose 16 basis points in the second quarter to 1.40%, according to data from S&P Global Market Intelligence. CRE borrowers across property types are facing press...
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