Treasury Yields Collapse After First Republic Downgrade To ‘Junk’
- Treasury Yields Collapse After First Republic Downgrade To ‘Junk’
by Tyler Durden, https://www.zerohedge.com/
If the systemic risk hangover from Credit Suisse wasn’t enough of a drag on US banking stocks, the news that S&P just downgraded First Republic Bank to ‘junk’ has accelerated the global de-risking.
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S&P cut First Republic Bank’s long-term issuer credit rating to BB+ from A- saying it thinks outflow risk remains elevated in the wake of the collapse of Silicon Valley Bank, despite regulatory help and the bank actively increasing its borrowing availability.
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“We expect increased wholesale borrowings to further weigh on its net interest margin”
“We believe that First Republic’s deposit base is more concentrated than most large U.S. regional banks, which presents heightened funding risks in the current environment.”
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First Republic stock is down 20% in the pre-market…
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read more.
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