(Bloomberg) — The largest US banks are warning of trouble ahead in auto loans as dropping prices for used cars risk leaving borrowers underwater. Wells Fargo & Co. said that higher loss rates for loans it originated late last year contributed to an increase in write-offs for the period. Ally Financial Inc., the country’s second-largest […]
Read More(Bloomberg) — Governments and companies around the world are facing unprecedented costs to refinance bonds, a burden that’s set to deepen fissures in debt markets and expose more vulnerabilities among weaker borrowers. A corporate treasurer or finance minister looking to issue new notes now would likely have to pay interest that’s about 156 basis points […]
Read More(Bloomberg) — JPMorgan Chase & Co. temporarily suspended share buybacks and reported second-quarter results that fell short of analysts’ estimates, driving the stock lower. The buyback pause is needed to quickly meet higher capital requirements and “allow us maximum flexibility to best serve our customers, clients and community through a broad range of economic environments,” […]
Read More(Bloomberg) — A quarter-trillion dollar pile of distressed debt is threatening to drag the developing world into a historic cascade of defaults. Sri Lanka was the first nation to stop paying its foreign bondholders this year, burdened by unwieldy food and fuel costs that stoked protests and political chaos. Russia followed in June after getting […]
Read More(Bloomberg) — The Biden administration is poised to fully block Russia’s ability to pay US bondholders after a deadline expires next week, a move that could bring Moscow closer to the brink of default. The Treasury Department’s Office of Foreign Assets Control is expected to let a temporary exemption lapse once it expires on May […]
Read More(Bloomberg) –Russia’s first external default in a century now looks all but inevitable after another brutal week for the country’s finances. First, the Treasury halted dollar debt payments from Russia’s accounts in U.S. banks, ramping up its restrictions on the country. Then, when an attempted hard-currency payment was blocked, Russia breached the terms on two […]
Read More(Bloomberg) — Russia’s long-term issuer and senior unsecured debt ratings were cut to Ca from B3 with a negative outlook by Moody’s Investors Service on expectations that capital controls by the Central Bank of Russia will restrict cross border payments including for debt service on government bonds. The change comes less than a week after […]
Read More(Bloomberg) — Contracts insuring $41 billion of Russian sovereign debt may be rendered worthless, even as they signal a record likelihood of default. That’s because international sanctions placed on the country in response to President Vladimir Putin’s invasion of Ukraine may both trigger credit-default swaps and also prevent the underlying bonds from being used for […]
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