Some Regional Banks Stocks are experiencing a big sell-off today, along with NYCB.
The regional bank index is down almost 10% in two days.
Moodys downgraded NYCB to negative watch
Ratings agency Moody’s said on Wednesday it had placed NYCB on review for a downgrade, which could put the bank into the “junk” territory.
Moody’s said the reflected the bank’s unanticipated loss in its New York office and multi-family properties, weak earnings, material decline in its capitalization, and its growing reliance on wholesale funding.
https://www.reuters.com/business/finance/moodys-puts-new-york-community-bancorp-review-downgrade-2024-02-01/
This has a different feel than March 2023, because this is more of a credit distress.
Not saying something bad is imminent, just that this could be the beginning of more credit stress in the banking industry in the future.
And not just a mismatch in duration creating liquidity issues as before.
I will try to look for commentary to see what analysts are saying.