S&P issues report on US credit cycle, feels it may reached a cyclical peak
- S&P: we anticipate a mostly stable ratings outlook in 2014, though it is more likely that we could downgrade select banks, rather than upgrade
- S&P: In our view, three main factors will shape the banking industry's financial performance next year"The first is any signs from the Federal Reserve about how quickly it will begin tapering its bond purchases, as well as the outlook for monetary tightening. Second, the U.S. economic outlook remains soft, and very low interest rates suggest that revenue pressures for banks will persist. And finally, while the global credit cycle is not in sync across all regions, we
believe the U.S. credit cycle should peak in late 2014 or early 2015."
- S&P: In our view, three main factors will shape the banking industry's financial performance next year"The first is any signs from the Federal Reserve about how quickly it will begin tapering its bond purchases, as well as the outlook for monetary tightening. Second, the U.S. economic outlook remains soft, and very low interest rates suggest that revenue pressures for banks will persist. And finally, while the global credit cycle is not in sync across all regions, we
believe the U.S. credit cycle should peak in late 2014 or early 2015."