{"id":24425,"date":"2023-04-26T17:33:57","date_gmt":"2023-04-26T17:33:57","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/bank-stress-likely-to\/"},"modified":"2023-04-26T17:34:13","modified_gmt":"2023-04-26T17:34:13","slug":"bank-stress-likely-to","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/bank-stress-likely-to\/","title":{"rendered":"Bank stress likely to lead to tighter lending, corporate defaults &#8211; BofA credit survey"},"content":{"rendered":"<p>LONDON (Reuters) &#8211;     Bank stress will likely be limited to a small number of banks but lead to tighter lending conditions and a pick-up in corporate defaults, a Bank of America April credit investor survey released on Wednesday showed.<\/p>\n<p>The gap between high-yield bonds and government debt has tightened on 63% of days so far in 2023, an all-time record, signalling that credit markets are faring well in face of recent market turmoil, BofA said.<\/p>\n<p>The biggest share of respondents to its latest survey, some 36%, said they expected bank stress to remain confined to small banks with challenged business models, with the United States more vulnerable than Europe given different regulatory supervisions.    <\/p>\n<p>However, over 20% said they believed that a credit crunch resulting from the bank stress would lead to a noticeable pick-up in corporate defaults. <\/p>\n<p>UK business insolvencies surged to almost 2,500 in March, the survey noted.<\/p>\n<p>As banks may withdraw from lending to high-risk assets, credit investors did not believe that private credit markets would step in and replace it.<\/p>\n<p \/>\n<p> (Reporting by Chiara Elisei, editing by Dhara Ranasinghe and Louise Heavens)<\/p>\n<p><a href=\"http:\/\/lynettelockhart.com\/client\/bank-stress-likely-to\/person-walks-past-a-bank-of-america-sign-in-new-2\/\"><img decoding=\"async\" src=\"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportEconomy\/tagreuters.com2023binary_LYNXMPEJ3P0JG-VIEWIMAGE.jpg\" alt=\"tagreuters.com2023binary_LYNXMPEJ3P0JG-VIEWIMAGE\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>LONDON (Reuters) &#8211; Bank stress will likely be limited to a small number of banks but lead to tighter lending conditions and a pick-up in corporate defaults, a Bank of America April credit investor survey released on Wednesday showed. The gap between high-yield bonds and government debt has tightened on 63% of days so far [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":24863,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[1223],"class_list":["post-24425","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportEconomy\/tagreuters.com2023binary_LYNXMPEJ3P0JG-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/24425","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=24425"}],"version-history":[{"count":2,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/24425\/revisions"}],"predecessor-version":[{"id":24864,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/24425\/revisions\/24864"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/24863"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=24425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=24425"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=24425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}