[ad_1]
NEW YORK, Aug 17 (Reuters) – Main U.S. and European banks are going through harder instances within the riskiest components of the mortgage market.
The most important U.S. lenders, together with Financial institution of America (BAC.N) and Citigroup (C.N), wrote down $1 billion within the second quarter on leveraged and bridge loans as rising rates of interest made it harder for banks to dump debt to buyers and different lenders.
Under is a compilation of write-downs that world banks took throughout the second quarter:
BANK OF AMERICA
Financial institution of America mentioned it took mark-to-market losses associated to leveraged finance positions within the second quarter.
Chief Monetary Officer Alastair Borthwick mentioned the market turmoil and abrupt slowdown within the second quarter sparked a downturn in leveraged finance markets, inflicting a variety of offers to get marked down.
CITIGROUP
Citigroup Inc (C.N) wrote down $126 million within the second quarter.
CFO Mark Mason mentioned leveraged finance was beneath appreciable stress, however famous that Citigroup was not a giant participant out there.
WELLS FARGO
Wells Fargo & Co (WFC.N) took a $107 million write-down as a consequence of a widening of credit score spreads.
CREDIT SUISSE
Credit score Suisse mentioned it suffered mark-to-market losses of 235 million Swiss Francs ($247.45 million) in leveraged finance.
JPMORGAN
JPMorgan took a $257 million markdown on its e-book of bridge loans.
“I feel we made aware selections right here to dial again our threat urge for food and accepted some share losses in leveraged finance,” CFO Jeremy Barnum mentioned.
DEUTSCHE
Deutsche Financial institution additionally took successful on its leveraged loans e-book because the dealmaking outlook turned bitter with rising rates of interest and excessive market volatility brought on by the Russian invasion of Ukraine.
Deutsche took a write-down of 150 million euros within the quarter. learn extra
BARCLAYS
Barclays marked down some leverage finance transactions because it managed its deal pipeline, mentioned Anna Cross, the financial institution’s finance director.
($1 = 0.9497 Swiss francs)
Reporting by Saeed Azhar; Enhancing by Richard Chang
Disclaimer: The views expressed on this article are these of the writer and will not mirror these of Kitco Metals Inc. The writer has made each effort to make sure accuracy of knowledge supplied; nonetheless, neither Kitco Metals Inc. nor the writer can assure such accuracy. This text is strictly for informational functions solely. It isn’t a solicitation to make any alternate in commodities, securities or different monetary devices. Kitco Metals Inc. and the writer of this text don’t settle for culpability for losses and/ or damages arising from the usage of this publication.
[ad_2]
Supply hyperlink