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
4.4 • 1.5K 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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