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☆ Recent rate hikes should also be passed on to savers, ECB's De Guindos says
▼ + stars: | 2023-06-22 | by ( ) www.reuters.com time to read: +2 min

MADRID, June 22 (Reuters) - Recent interest rate hikes by the European Central Bank should be fully transmitted to savers and reflected in higher deposit rates, ECB Vice-President Luis de Guindos said on Thursday. "A full transmission (of monetary policy) requires the remuneration of savings," De Guindos told a financial event in the northern Spanish city of Santander. Spanish banks on Tuesday however pushed back against a government call to start paying higher rates on deposits. Lenders maintain that a lower deposit rate is partly the result of excess liquidity in the sector and deny claims of a lack of competition in Spain's relatively concentrated banking sector. This would leave them with around 40 billion euros of those funding lines at the ECB.

Persons: Luis de Guindos, De Guindos, DBRS, Jesús Aguado, Jan Harvey Organizations: European Central Bank, ECB, Reuters, Thomson Locations: MADRID, Spanish, Santander, Spain, Madrid, TLTROs

☆ Despite recent good news, many on Wall Street still see a recession coming
▼ + stars: | 2023-06-21 | by ( Jeff Cox | ) www.cnbc.com time to read: +5 min

Despite some recent positive signs for the U.S. economy, the Wall Street consensus is holding out belief that a recession is lurking. Still, LPL doesn't see "another 2008" even though "investors should anticipate some volatility as the economic outlook remains cloudy." However, Wall Street persists in worries that the central bank will not be able to engineer its hoped-for soft landing. "Optimism around a soft landing [is] growing with the rally in equities and strong labor market," Horneman said. "We believe the chance of a soft landing is unlikely."

Persons: Jeffrey Roach, Lawrence Gillum, Roach, Gillum, LPL, BlackRock, DBRS Morningstar, Michael Heydt, Jerome Powell, Megan Horneman, Horneman Organizations: LPL, Fed, of Michigan, Atlanta, Wall, Investment, BlackRock, ECB, Wednesday, Financial Services Committee, Verdence Capital Advisors Locations: U.S

☆ Wildfire losses to compound insurer’s concerns, DBRS Morningstar analyst says
▼ + stars: | 2023-06-09 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWildfire losses to compound insurer’s concerns, DBRS Morningstar analyst saysMarcos Alvarez, global head of insurance at DBRS Morningstar, discusses the wildfire smoke blanketing the U.S. east coast as a result of Canadian wildfires and the ramifications for the insurance market.

Persons: DBRS Morningstar, Marcos Alvarez Organizations: DBRS Locations: U.S

☆ Insured losses from Canadian wildfires are still manageable, says DBRS Morningstar
▼ + stars: | 2023-06-09 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailInsured losses from Canadian wildfires are still manageable, says DBRS MorningstarNadja Dreff of DBRS Morningstar discusses Canada's insurance industry, the country's ongoing wildfires and catastrophe coverage.

Persons: DBRS Morningstar Nadja Dreff, DBRS Morningstar

WASHINGTON, May 31 (Reuters) - A divided U.S. House of Representatives passed a bill to suspend the $31.4 trillion debt ceiling on Wednesday, with majority support from both Democrats and Republicans to overcome opposition led by hardline conservatives and avoid a catastrophic default. The measure, a compromise between Biden and House Speaker Kevin McCarthy, drew opposition from 71 hardline Republicans. Progressive Democrats - who along with Biden had resisted negotiating over the debt ceiling - oppose the bill for a few reasons, including new work requirements from some federal anti-poverty programs. Senator Bernie Sanders, a progressive independent who caucuses with the Democrats, said he would oppose the bill due to inclusion of an energy pipeline and extra work requirements. The debt-ceiling standoff prompted ratings agencies to warn that they might downgrade U.S. debt, which underpins the global financial system.

Persons: Joe Biden's, Biden, Kevin McCarthy, Chip Roy, Jim McGovern, Chuck Schumer, Mitch McConnell, Schumer, Rand Paul, Bernie Sanders, Sanders, White, DBRS Morningstar, Fitch, David Morgan, Richard Cowan, Moira Warburton, Gram Slattery, Julio, Cesar Chavez, Kanishka Singh, Scott Malone, Rosalba O'Brien, Alistair Bell, Diane Craft Organizations: House, Republicans, Republican, Senate, Caucus, Progressive Democrats, Democratic, Office, NEXT, Twitter, Internal Revenue Service, P Global, Thomson Locations: United States

May 28 (Reuters) - Global investors are gaming out how a tentative deal to raise the United States debt ceiling could ripple through markets, as lawmakers strive to pass the agreement through Congress before a June 5 deadline. U.S. five-year credit default swaps narrowed, meaning that the cost of insuring against exposure to a U.S. debt default fell. “The debt ceiling agreement is only the first step in saving the government from the brink of illiquidity.”The deal suspends the debt ceiling until January 2025 in exchange for caps on spending and cuts in government programs. U.S. Treasury Secretary Janet Yellen on Friday set a deadline for raising the federal debt limit, saying the government would default if Congress does not increase the debt ceiling by June 5. Optimism that a debt ceiling deal was near and hefty gains in AI-related stocks helped the S&P 500 (.SPX) close at its highest level since August 2022 on Friday.

“The debt ceiling agreement is only the first step in saving the government from the brink of illiquidity.”The deal suspends the debt ceiling until January 2025 in exchange for caps on spending and cuts in government programs. U.S. Treasury Secretary Janet Yellen on Friday set a deadline for raising the federal debt limit, saying the government would default if Congress does not increase the debt ceiling by June 5. Optimism that a debt ceiling deal was near and hefty gains in AI-related stocks helped the S&P 500 (.SPX) close at its highest level since August 2022 on Friday. S&P Global Ratings stripped the United States of its coveted top rating over a debt ceiling showdown in 2011, a few days after a last-minute agreement the agency at the time said did not stabilize "medium-term debt dynamics." S&P Global Ratings, Fitch and Moody's did not immediately respond to Reuters requests for comment.

☆ Top US credit rating under watch
▼ + stars: | 2023-05-26 | by ( ) www.reuters.com time to read: +2 min

Following are some of the actions by the agencies in recent days:Fitch:Fitch earlier this week put the U.S. credit rating on watch for a possible downgrade. Fitch has also placed 11 ratings of U.S. credit-linked notes (CLNs) on ratings watch with negative implications. Moody's currently has an "Aaa" rating for the U.S. government with a stable outlook - its highest creditworthiness evaluation. S&P Global:The agency has not put U.S. ratings on watch yet, but has had its second-highest rating on the country since 2011, in contrast to Fitch and Moody's. That year, S&P took a bold call to cut U.S. rating to "AA-plus" from its highest "AAA" even as a default was narrowly averted.

☆ Data lifts dollar, euro soft as Germany enters recession
▼ + stars: | 2023-05-25 | by ( ) www.cnbc.com time to read: +3 min

The dollar rose for a fourth straight session on Thursday against a basket of major peers to hit a fresh two-month high, as U.S. economic data signaled resilience even after the Federal Reserve's aggressive rate hike cycle. In contrast the German economy, Europe's largest, was in recession in the first quarter as GDP fell 0.3%, sending the euro lower. The dollar index rose 0.27% at 104.100 after hitting 104.27, its highest since March 17. Boston Federal Reserve President Susan Collins said on Thursday the time may be at hand for the U.S. central bank to pause its rate hike cycle. Worries about a potential U.S. default supported the dollar as talks continue in Washington to raise the $31.4 trillion debt ceiling.

Persons: Joe Manimbo, CME's, Susan Collins, Fitch, DBRS Morningstar, Kevin McCarthy, Sterling Organizations: Washington DC, Fed, Boston Federal, U.S, Treasury, AAA, White House, Republican Locations: Brest, France, U.S, Washington, United States

[1/3] Smoke rises above the southeast perimeter of the Paskwa fire (HWF030) as it burns near Fox Lake, Alberta, Canada May 16, 2023. Alberta Wildfire/Handout via REUTERSMay 17 (Reuters) - Smoke blanketed the skies over much of Alberta on Wednesday as firefighters from Canada and the United States battled raging wildfires that have prompted evacuations, disrupted rail service and shuttered energy production in Canada's main oil-producing province. Of estimated May production volumes, about 60% are currently subject to extreme wildfire danger levels, with the remaining 40% subject to very high danger, Oslo-based Rystad said. Wildfire smoke has covered a large part of Western Canada. Air quality in places including Edmonton and Alberta has deteriorated to category 10+, the worst level on Environment Canada's Air Quality Health Index, indicating "very high risk."

There are some signs that the broader $275 billion AT1 market is recovering. Reuters GraphicsLast month, Japan's Sumitomo Mitsui Financial Group (8316.T) was the first major global bank to sell AT1s since the March rout. With time, analysts expect UBS to sell AT1s aplenty to meet its capital requirements. It has a 700 million Singapore dollar ($755 million) AT1 bond repayable in November followed by a heftier $2.5 billion bond in January. RATINGS GAMEInvestor appetite for a UBS AT1 could also hinge on its future credit profile.

☆ There will be 'winners and losers' in the commercial real estate market, DBRS Morningstar says
▼ + stars: | 2023-05-09 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThere will be 'winners and losers' in the commercial real estate market, DBRS Morningstar saysMirco Iacobucci, head of European commerical real estate at DBRS Morningstar, says there will be clear "winners and losers" within the commercial real estate market as the sector comes under pressure from higher interest rates.

☆ Scope Ratings places U.S. credit ratings under review for possible downgrade
▼ + stars: | 2023-05-06 | by ( ) www.cnbc.com time to read: +2 min

Scope Ratings on Friday placed the United States of America's AA long-term issuer and senior unsecured debt ratings in local and foreign currency under review for a possible downgrade due to longer run risks associated with the misuse of the debt ceiling instrument. Scope also placed United States' S-1+ short-term issuer ratings in local and foreign currency under review for downgrade. Rating agencies Moody's and Fitch both have a triple-A rating for the United States - the highest credit quality status they can assign to a borrower. S&P Global's sovereign rating for the United States is 'AA+', the second highest rating by the agency. Scope Ratings has been in talks with the European Central Bank to become one of its recognized agencies, joining Standard and Poor's, Moody's, Fitch and DBRS.

[1/2] Florida Governor Ron DeSantis walks outside the Treasury during his visit in London, Britain April 28, 2023. The bill is one of the furthest-reaching efforts yet by U.S. Republicans against sustainable investing efforts, and a clear political message from DeSantis, a likely presidential candidate. We do not want them engaged on these ideological joyrides," said DeSantis just before he signed the bill at a webcast event. Analysts said the legislation goes further than other state anti-ESG bills, even as business groups worry the efforts pose financial risks. There are climate and weather risks that are highly relevant, especially in a state like Florida, and would be captured in our assessment of credit risk," Torgerson said.

☆ Rome foot-dragging can help EU kick bad aid habits
▼ + stars: | 2023-04-18 | by ( Rebecca Christie | ) www.reuters.com time to read: +7 min

Italian Prime Minister Giorgia Meloni is trying to pry out 19 billion euros in EU pandemic aid. Economic conditions have changed a lot since it launched its 800 billion euro pandemic recovery plan in 2020. With 191.5 billion euros requested in grants and loans, it is in line to receive more EU pandemic aid money than any of its peers, and 67 billion euros has already changed hands. EU member states approved public borrowing of about 800 billion euros to fund the aid programme. Total commitments come to only about 508 billion euros, according to a dataset maintained by the Brussels-based Bruegel think tank.

☆ Landlords who bought thousands of apartments are facing a reckoning
▼ + stars: | 2023-04-11 | by ( Daniel Geiger | ) www.businessinsider.com time to read: +9 min

Investors showed outsize interest in apartment buildings during the pandemic. Rents and occupancy rates were rising, interest rates remained relatively low, and rental-property prices were climbing with no sign of letting up during a surge in housing demand. Laguna Point did not respond to a request for comment. Marc McDevitt, a senior managing director at Cred iQ, said it was possible Laguna Point had lost some, or even all, of its investment in the deal. While offices have been going through a paradigmatic shift as more workers do their jobs remotely, apartment buildings have experienced robust demand from tenants.

☆ U.S. bank crisis 'unlikely' to spill over to Canada, analyst says
▼ + stars: | 2023-03-20 | by ( Divya Rajagopal | ) www.reuters.com time to read: +4 min

read more"The U.S. contagion is unlikely to spill over to Canadian banks as the issues in U.S. are unique and specific to certain business models or lending activities," said James Shanahan, banking analyst with Edward Jones to Reuters. REGIONAL BANK SCRUTINYCanadian banks emerged stronger from the 2008 global financial crisis due to prudent regulations and since built a reputation for financial stability. The Canadian banks have kept their focus on domestic lending and majority of their earnings come from serving local clients. But in recent years, Royal Bank, BMO, TD Bank and CIBC (CM.TO) have expanded into the United States by buying regional lenders to benefit from strong growth in second-tier U.S. cities. However, last week the regional bank's stock was hit after the SVB collapse.

☆ UBS' takeover of Credit Suisse is probably the 'smoothest option,' analyst says
▼ + stars: | 2023-03-20 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailUBS' takeover of Credit Suisse is probably the 'smoothest option,' analyst saysElisabeth Rudman, global head of financial institutions at DBRS Morningstar, says, however, "that doesn't mean that there won't be some volatility in the meantime."

☆ The $17 billion wipeout of Credit Suisse bondholders has not gone down well in Europe
▼ + stars: | 2023-03-20 | by ( Sophie Kiderlin | ) www.cnbc.com time to read: +1 min

Credit Suisse's additional tier one bonds are set to be wiped out following the struggling bank's takeover by UBS. One section of Credit Suisse's bondholders is set to be wiped out following the struggling bank's takeover by UBS, causing them to see investments worth 16 billion Swiss Francs ($17 billion) become worthless. The move has angered Credit Suisse AT1 bond holders as their investments have seemingly been lost, while shareholders will receive payouts as part of the takeover. Therefore, the decision "can be interpreted as an effective subordination of AT1 bondholders to shareholders," Goldman Sachs' credit strategists said in a research note published Sunday. "It also represents the largest loss ever inflicted to AT1 investors since the birth of the asset class post-global financial crisis," they added.

☆ U.S. bank crisis 'unlikely' to spill over to Canada, analysts say
▼ + stars: | 2023-03-20 | by ( Divya Rajagopal | ) www.reuters.com time to read: +4 min

"The U.S. contagion is unlikely to spill over to Canadian banks as the issues in U.S. are unique and specific to certain business models or lending activities," said James Shanahan, banking analyst with Edward Jones to Reuters. REGIONAL BANK SCRUTINYCanadian banks emerged stronger from the 2008 global financial crisis due to prudent regulations and since built a reputation for financial stability. The Canadian banks have kept their focus on domestic lending and majority of their earnings come from serving local clients. But in recent years, Royal Bank, BMO, TD Bank and CIBC (CM.TO) have expanded into the United States by buying regional lenders to benefit from strong growth in second-tier U.S. cities. However, last week the regional bank's stock was hit after the SVB collapse.

Credit Suisse saw more than $200 million net outflows from its U.S. and European managed funds after March 13, Morningstar Direct said on Friday. DBRS Morningstar on Thursday became the first global rating agency to cut the bank's credit score, with a downgrade to "BBB", which still qualifies Credit Suisse as investment grade. Credit Suisse shares are down about 26% this week and poised for their biggest week drop since October 2008 and the global financial crisis. U.S. shareholders of Credit Suisse sued the bank on Thursday, claiming it defrauded them by concealing problems with its finances. Credit Suisse declined to comment on the lawsuit.

☆ Credit Suisse shares fall again, sentiment remains fragile
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +3 min

"While markets are relieved that the Swiss central bank stepped in, sentiment is bound to remain very fragile, particularly as investors will likely worry about the eventual economic impact of aggressive monetary policy tightening by the European Central Bank (ECB)," she added. DBRS Morningstar on Thursday became the first global rating agency to cut the bank's credit score, with a downgrade to "BBB", which still qualifies Credit Suisse as investment grade. Credit Suisse shares are down about 22% this week and poised for their biggest week drop since March 2020 when the COVID-19 crisis wreaked turmoil across world markets. U.S. shareholders of Credit Suisse sued the bank on Thursday, claiming it defrauded them by concealing problems with its finances. Credit Suisse declined to comment on the lawsuit.

☆ Credit Suisse shares slide 10% as the shine of its rescue package wears off
▼ + stars: | 2023-03-17 | by ( Karen Friar | ) www.businessinsider.com time to read: +2 min

Credit Suisse stock slid almost 10% Friday, pulling back after it jumped as much as 20% the previous day. The declines came even after the SNB agreed to loan $54 billion to the Swiss banking giant. DBRS Morningstar cut Credit Suisse's credit score Thursday, amid concerns it may default on its debt. Credit Suisse is facing a pile of financial troubles, and investors are concerned it may default on its debt. DBRS Morningstar cut Credit Suisse's credit score to BBB on Thursday.

☆ DBRS Morningstar cuts Credit Suisse credit rating to 'BBB'
▼ + stars: | 2023-03-16 | by ( ) www.reuters.com time to read: 1 min

March 16 (Reuters) - DBRS Morningstar became the first global rating agency to cut Credit Suisse’s credit score on Thursday, less than a day after a major share price plunge saw Switzerland’s central bank provide emergency support to the lender. DBRS downgraded the issuer rating of the bank to 'BBB' as it "continues to report missteps and compliance failures, resulting in a visible weakening of the franchise" and said the parent company's "ability to restore stakeholders’ confidence" is concerning. Credit Suisse's share tumble on Wednesday had threatened to spiral into a wider banking crisis, but a lifeline from the Swiss National Bank helped ease fears and at least temporarily stabilize the market. Reporting by Rodrigo CamposOur Standards: The Thomson Reuters Trust Principles.

☆ Asian markets tumble as SVB fears rattle banking sector
▼ + stars: | 2023-03-14 | by ( Laura He | ) edition.cnn.com time to read: +3 min

Investors are now on edge over whether the demise of SVB could spark a broader banking sector meltdown. On Monday, US stocks were mixed, with banking shares taking a hit. In Hong Kong, shares in Bank of China (Hong Kong) and Hang Seng Bank fell 3.7% and 1.3% respectively. Sumitomo Mitsui Financial Group and Mizuho Financial Group both dropped more than 7%. In Seoul, KB Financial Group and Shinhan Financial Group fell 3.6% and 2.5% respectively.

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