U.S. bank stocks and bonds clobbered by recession worry

Yahoo Finance ^ | 2/9/2016 | Caroline Valetkevitch and Will Caiger-Smith

[EBH]

NEW YORK (Reuters/IFR) - U.S. bank stocks and bonds took a pounding on Monday as recession fears compounded concern about their exposure to the energy sector and expectations that global interest rates are unlikely to rise quickly....

Meanwhile, bonds issued by U.S. banks extended their decline, with the yield premium demanded by investors to hold these securities, rather than safer U.S. Treasury debt, climbing to the highest in three-and-a-half years, according to Bank of America Merrill Lynch Fixed Income Index data.

"Investors' attitudes seem to be worsening relative to the likelihood of a global recession. I think that's what financials are reflecting - that their net interest margins are going to be further compressed under collapsing (sovereign) bond yields," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.

Yields on sovereign bonds from so-called safe-haven issuers such as the United States, Germany and Japan have tumbled recently as investors increasingly doubt central banks in these countries will be able to raise interest rates any time soon....

[Mr Apple]

What’s your take on this?

[Lib-Lickers 2]

Obama just came out and ridiculed Republicans about the economy being bad.. so all the bad market and bad economic growth is all an illusion made up by people who don’t like him,, too bad my stock portfolio doesn’t believe it.. what a putz

[grania]

Those banking stocks are really going to take a pounding if it doesn't seem as if a pol bought and paid for by GoldmanSacs and the other big, bad banks will become the next president.

Just a guess.

[Mr Apple]

What do conclude from this article?

[TigerLikesRooster]

It is getting harder to prop up the economy. Still, U.S. is in better shape than other countries, I think. When things go bad, economies of other countries suffer first. People in those countries would move their fund(wealth) to U.S.. As bad as U.S. economy is, many in the world believe that U.S. economy is more stable and robust than theirs. This is especially true among wealthy Chinese. U.S. would be the last one to go down because of these additional injection of foreign money. The downside is that, in some region, housing price may not go down even when local economy worsens.

This does not mean that U.S. economy is peachy. It is just that U.S. economy would be able to hang on longer than others.

[The Duke]

...what a putz

Obama doesn't care about you because your vote costs him too much, and you only vote once.

[4rcane]

Even Sanders think the economy is bad

[Mr Apple]

Thank you very much for your reply.

[Buckeye McFrog]

U.S. bank stocks and bonds clobbered by prospect of a Sanders-Warren Administration.

There. Fixed it.

[StoneWall Brigade]

End Time Bible Prophecy Ping.

Harbinger/Shemitah

Year of the Shemitah. The principle of the sabbatical years of the land.

To be on the End Time Bible Prophecy Ping, list FReep mail me or Saveferris

[EBH]

5 hours ago Goldman said banks in EU are fine and there is no crisis. Bloomberg

[laplata]

5 hours ago Goldman said banks in EU are fine and there is no crisis. Bloomberg

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I saw a piece yesterday that said Deutch Bank, the largest , is hurting.

[Vaduz]

Looks like the safest bank is the mason jar in the back yard.

[Jean2]

I would like to be on the list please. Thank you.

[StoneWall Brigade]

You’re added.

[SaveFerris]

got her too - thanks

[StoneWall Brigade]

Our list is growing rapidly. My good friend