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InvestTalk

3-15-2023 – Ratings Firm Downgrade Takes the Banking System from Stable to Negative

InvestTalk

Hosts Justin Klein & Luke Guerrero, CFA | Wealth Managers and Investment Advisors

Entrepreneurship, News, Investing, News Commentary, Business, Business News

4.41.5K Ratings

🗓️ 15 March 2023

⏱️ 47 minutes

🧾️ Download transcript

Summary

Analysts cited a ”‘rapidly deteriorating operating environment” despite regulators’ efforts to shore up the industry.

(They say that other institutions with unrealized losses or uninsured depositors still could be at risk.)

 

Today's Stocks & Topics: SCHP - Schwab U.S. TIPs ETF, SVOL - Simplify Volatility Premium ETF, ORI - Old Republic International Corp., WRB - W.R. Berkley Corp., IP - International Paper Co., CCL - Carnival Corp., Shale Industry, Gold & Silver, The Fed and Interest Rates, STLD - Steel Dynamics Inc., Deglobalization.



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Transcript

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0:00.0

This is Invest Talk, independent thinking, shared success.

0:09.0

Just and client and Steve Peasley, stand ready to take your finance and investment questions

0:14.2

and share their unbiased answers.

0:18.0

Invest Talk is made possible by KPP Financial, a registered investment advisor firm, serving

0:23.2

clients throughout the United States.

0:26.2

The clarity for your path forward starts now.

0:30.5

Here is KPP Chief Executive Officer, financial advisor Justin Clyde.

0:38.7

Good afternoon fellow investors and welcome back to Invest Talk.

0:42.8

This is our Wednesday, March 15, 2023 edition and certainly a lot happening in markets,

0:50.4

financial markets, the financial sector and the economy as a whole.

0:56.0

And certainly an interesting time, you know, it's one of those things where many don't

1:07.3

understand the, you know, let me back up, a lot of people fight the last war.

1:14.3

It's one of the one, one of the major lessons that stick with me whenever I'm thinking about

1:19.8

risk of any kind.

1:24.0

And it's because we have memories, humans are shaped by their experiences.

1:34.4

And when you're talking about risk in, say, banks, for example, everyone focuses on credit

1:44.8

risk because that's the last experience that they've had with major banking crises.

1:52.2

Oh, what about credit risk and, and think about this from a regulatory standpoint as

1:57.5

well, right, the Dodd-Frank bill was all about forcing banks to take less credit risk.

2:07.8

And what's interesting here is that this is caused by the exact opposite, not enough credit

2:16.6

risk. Isn't that interesting? And it's a risk that most people don't even think about,

2:29.8

don't even understand, duration risk, not just for the bonds that they hold, but any type

...

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