TITLE

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

AUTHOR(S)
Browdie, Brian
PUB. DATE
May 2013
SOURCE
American Banker;5/14/2013, Vol. 178 Issue 74, p5
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
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.
ACCESSION #
87603817

 

Related Articles

  • Community Banks Resort To Floating-Rate Loans. Witkowski, Rachel // American Banker;5/14/2012, Vol. 177 Issue 74, p1 

    The article reports U.S. community banks are competing against big banks that quote loan rates below two percent by offering floating rates on commercial and industrial loans. Competition in the loan market as of May 2012, the financial risk related to long-term floating-rate loans, and...

  • Classified Assets Stymie Lending, M&A. WITKOWSKI, RACHEL // Mergers & Acquisitions Report;10/10/2011, Vol. 24 Issue 41, p1 

    The article reports on the hard-line approach to classifying loans adopted by bankers as a result of stricter regulations. Such approach, in effect, delays an economic recovery for the U.S. According to bankers, they are implementing such approach to businesses suffering from limited cash flow....

  • Banks Stepping Up Commercial Lending. Adler, Joe // High Yield Report;9/3/2012, p5 

    The article reports an increase in commercial lending by U.S. banks as of September 2012. There has been an 11 percent increase in corporate loans shared by three or more lenders to 1.24 trillion U.S. dollars. On the other hand, loans with a special mention declined 6.7 percent to 99 billion...

  • C&I Loans Fall $9B in Jan. 13 Week.  // American Banker;1/25/2010, Vol. 175 Issue 12, p12 

    This article reports that commercial and industrial loans generated by American banks declined by nine billion dollars during the week ending January 13, 2010, as compared to the previous week. According to a report released by the U.S. Federal Reserve, commercial and industrial loans totaled...

  • C&I Loans Off $4.5B In March 10 Week.  // American Banker;3/22/2010, Vol. 175 Issue 43, p14 

    The article reports that U.S. banks' industrial and commercial loans decreased $4.5 billion, to approximately $1.289 trillion, in the week ended March 10, 2010.

  • Moody's Bumps Down Ratings for Sports Authority. Lewis, Jakema // High Yield Report;1/21/2016, p1 

    The company missed a $21 million interest payment due Jan. 15. It will have 30-days before it triggers an event of default.

  • Moody's' Proposed LGD Rating Could Lead To Lean Upgrades. K. K. // Bank Loan Report;1/16/2006, Vol. 21 Issue 2, p7 

    The article reports on the plan of Moody's Investor Service Inc. to issue two new credit ratings for investing companies in the U.S. The two methods include probability of default rating and the loss-given-default rating that aimed to further breakdown the elements of credit risks. The...

  • Moody's U.S. Default Rate Rises to 3.0%. Fest, Glen // High Yield Report;12/10/2015, p5 

    The article reports on the increase in U.S. and global speculative-grade default rates in November 2015 amidst the continuing strains in the commodities sectors, according to Moody's Investors Service. Topics covered include the 12-month corporate default rates in the U.S. and worldwide,...

  • Moody's: Oil/Gas Will Drive Defaults to Four-Year High. Fest, Glen // High Yield Report;11/2/2015, p6 

    The article reports on rating agency Moody's Investors Service's data which showed an increase in the speculative-grade corporate default in the third quarter of 2015. Topics discussed include the projected increase of defaults to four-year high in 2016 due to the crisis in the oil and gas...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics