The permabull clowns are doing everything possible to convince folks that this time is different

US 30-year bond yield falls to record low under 2%

As global recession fears grow. key part of the U.S. yield curve inverted even further Wednesday morning, exacerbating fears of an impending recession.

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Moody’s Downgrades Outlook for Global Investment Banks

According to Moody’s, global investment banks could see their profitability come under greater pressure over the next 12 to 18 months.
The inverted yield curve, according to Moody’s, is another risk for banks.
The research further states that slow economic growth and high levels of corporate debt could lead to higher costs for investment banks.

Ratings firm Moody’s downgraded its outlook for global investment banks (GIB) Tuesday from “positive” to “stable” citing the slowdown in growth, and lower or negative interest rates.

According to Moody’s, these GIBs — which includes the likes of Goldman Sachs, J.P. Morgan, HSBC and Deutsche Bank — will see their profitability come under greater pressure over the next 12 to 18 months. They will also witness low client activity due to global uncertainties, Moody’s said.

“The stable outlook for the global investment banks reflects our expectations that profitability for the GIBs may have peaked for this economic cycle,” Ana Arsov, managing director at Moody’s, said in the research.

Many central banks around the world have performed U-turns with their monetary policy, cutting interest rates in order to boost lending in their economies. Lower interest rates, however, restrict a bank’s ability to make profits. Rising rates, meanwhile, are good for banks as they allow them to lend money to investors with a profitable rate of interest.

‘Eventually It Just Snaps’: Strain Worsens on U.S. Profit View

“There’s a negative feedback loop that’s starting to develop. You can absolutely see hints of it,” Calvasina said in an interview. Companies “are being cautious.”

‘Eventually It Just Snaps’: Strain Worsens on U.S. Profit View

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