Contagion fears triggered by the collapse of Silicon Valley Bank and Signature Bank, then exacerbated by trouble at Switzerland’s Credit Suisse, is giving way to fresh expectations for at least 100 basis points, or a full percentage point, of interest rate cuts by the Federal Reserve before the end of the year.
Behind the repricing of expectations is concern that contagion fears might not be contained to just a few banks, after the top shareholder of Credit Suisse CS, -22.51% told Bloomberg that it wouldn’t raise its stake in the Swiss bank. “Credit Suisse is in focus at the moment as the bank’s shares dropped to a fresh all-time low and jitters reverberate throughout the European banking sector,” said BMO Capital Markets strategists Ian Lyngen and Ben Jeffery.
RIP credit suisse. You are the latest, but not the last
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: Forbes - 🏆 394. / 53 Read more »