Low Yields, Loosening Terms Raise Risk for Banks: Moody's

Browdie, Brian
May 2013
American Banker;5/14/2013, Vol. 178 Issue 74, p5
Trade Publication
The article looks at the U.S. banking industry in light of lowered loan pricing and looser standards for loan origination. A report from Moody's Investors Service suggests banks are at risk because lower pricing gives less protection from commercial and industrial (C&I) loan defaults. The article also notes competition and risk taking in the high-yield corporate bond and structured-finance markets. It also notes guidelines issued by industry regulators for leverage lending in March 2013.


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