The KUIK Morning Market Report for Wednesday, October 11:
Markets are flat.
Dow Jones Industrial Average
30 Year Treasury
European banks still hold "a very high" €988 billion ($1.17 trillion) in nonperforming loans , according to new estimates from the International Monetary Fund released Wednesday. Peter Dattels, deputy director of the IMF’s monetary and capital markets department, said recent developments have been encouraging and the total of bad loans should decline to €900 billion by the end of the year. Italian banks should be able to sell €65 billion in nonperforming loans this year and Spanish banks should be able to sell €30 billion.
Here in the US Moody’s says households in certain income categories are increasing their debt or taking on high amounts, which may pose a risk to banks and financial institutions. Families in the 20 to 40% percentile, or who have before-tax incomes of about $33,100, had debt burdens tick up to 15.6% in 2016 from 15.3%, according to data from the Federal Reserve’s Survey of Consumer Finances. That’s not a big jump, Moody’s said, but wrote that “the rise suggests a change in behavior among certain borrowers or lenders that may lead to further increases or widen.”
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.