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EC SD | Yes - lots in the news again, in the USA, Japan, China, and Europe:
https://www.cnn.com/2024/02/01/investing/bank-losses-office-real-est...
I don't think any banks are investable at this time. Not because they all have serious troubles, but because trouble is lurking out there and it is very hard to know who is holding the bag...
The unprecedented rate hikes from central banks pushed the rate curve to be highly inverted. Banks don't make money with an inverted yield curve and if they hold unhedged long bonds, they will lose a ton on them too. The yield curve is still highly inverted, so the extreme pain for the banks continues. Now add on top, the high level of unsecured consumer debt in recent months. If that goes bad too, I am not sure which banks can take those additional losses. Funny thing is the XLF is rising this year, so is that a head fake before the crash? | |
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reality check a story about Banks
