China's monetary stimulus measures and currency depreciation could trigger a wave of deleveraging across cross-border carry trades, warns Josh Klaczek, head of Asia financial services equity research at J.P. Morgan.» Read More
Fire sales worth up to $43 billion could soon spark a flurry of opportunistic investment, according to a recent report from the Royal Bank of Scotland, as the ongoing squeeze in the commercial paper market forces investment banks to liquidate holdings.
Here are the latest video reports from Jackson Hole, Wyo., where Federal Reserve Chairman Ben Bernanke said that the central bank is prepared to act "as needed" to help provide liquidity to the financial system but won't bail out investors who made bad decisions.
Stocks ended another volatile week on a positive note as investors were cheered by President Bush's plan to help distressed homeowners and Fed Chairman Ben Bernanke's stance that the central bank will act as needed to address credit concerns.
Investors should adopt a defensive strategy in September, normally the worst-performing month for stocks, analysts say. "I think that the thing to do is avoid industries that are significantly impacted by credit woes and stick with those companies that won't be affected," Steve Massocca, co-CEO of Pacific Growth Equities, told CNBC.com.
President Bush tried to calm financial markets by announcing proposals intended to prevent homeowners from defaulting on risky mortgages.
U.S. subprime auto lenders say they do not see a rising wave of defaults, but over the past year they have made a number of moves to burnish the scratches and dents in their loan portfolios.
Barclays Capital, the investment banking arm of U.K. bank Barclays, said on Friday it will provide financing to a structured investment vehicle (SIV) it helped set up last year.
Investment banks are set to cut 10% to 15% of their staff across the board as turmoil in the markets takes its toll on revenues, the Financial Times reports. The bulk of cuts are expected in structured credit and leveraged finance.
A Manhattan bankruptcy judge on Thursday gave two bankrupt Bear Stearns hedge funds 30 days of additional protection from creditors looking to seize their assets, but refused to permanently shield them from U.S. lawsuits.
Residents of Florida don’t need an anniversary to remember Katrina; they get a reminder every month in their homeowner’s insurance bill. The devastating hurricane season of 2005 caused and is still causing many insurers to either raise rates or drop coverage entirely.
The credit market is experiencing an unprecedented loss of confidence due to the lack of transparency over where exposures lie rather than underlying credit quality problems, Moody's Investors Service President Brian Clarkson said on Thursday.
European stocks managed to close in the green Thursday after oscillating between the joy of some good corporate results on the continent and worries about credit market woes.
The reason we are getting these CRAZY swings in the stock market is because traders are confused about the direction of the economy. Specifically, they are uncertain about the impact of the credit crunch on consumers and corporations.
Stocks ended broadly higher as investors were hopeful the Federal Reserve will lower interest rates next month. "You had more people positive today that the Fed is going to cut rates," said Todd Leone, head of listed trading at Cowen & Co. "A lack of bad news is really the main thing moving the markets today -- as long as you don't hear anything negative, the market does OK."
The subprime mortgage crisis is spreading to a somewhat unexpected place: homes costing more than $500,000.
Deutsche Bank Americas Chief Executive Seth Waugh said Tuesday that the difficulties in credit markets are beginning to end, but risk is still being repriced and more bad news may emerge.
Merrill Lynch threw cold water on the financial sector Tuesday by downgrading Bear Stears, Citigroup and Lehman, citing their exposure to problems in the credit markets. The three were downgraded to "neutral" from "buy," which helped pushed financial stocks lower.
Indian companies that process U.S. mortgages are reporting fewer work orders and diminishing revenue because of the subprime loan fallout overseas.
Bhaviesh and Varsha Shah bought their dream home in a new development east of Los Angeles two years ago, planted flowers around an emerald lawn and picked out wicker furniture for sitting outside on cool afternoons.
Stocks ended higher at the end of a quiet week of trading, as investors were encouraged by further moves by the Federal Reserve and a vote of confidence for the nation's largest mortgage lender. The Dow Jones Industrial Average posted a weekly gain of 1.8%, the S&P 500 rose 1.7% and the Nasdaq Composite advanced 2.1%.