homemarket NewsAs global markets tumble, Nepean Cap says problems with US regional banks far from over
As global markets tumble, Nepean Cap says problems with US regional banks far from over
In an interview with CNBC-TV18, Gautam Trivedi, Co-Founder and Managing Partner of Nepean Capital expressed concern about the precarious condition of the markets, citing ongoing issues with regional banks in the United States as a key factor.
The collapse of Silicon Valley Bank and Signature Bank has sent shockwaves throughout the industry and markets in Asia were under pressure on Monday due to this. Europe too has begun on a sombre note at the time of publishing.
Some of the world's largest central banks came together on Sunday to stop a banking crisis from spreading as Swiss authorities persuaded UBS Group AG on Sunday to buy rival Credit Suisse Group AG in a historic deal.
In an interview with CNBC-TV18, Gautam Trivedi, Co-Founder and Managing Partner of Nepean Capital expressed concern about the precarious condition of the markets, citing ongoing issues with regional banks in the United States as a key factor.
He said, “The markets are in a very precarious condition right now, even notwithstanding the bailout of Credit Suisse by UBS, that apart, but the problem with the smaller banks, regional banks in the US is far from over.”
Trivedi also spoke about the recent news that S&P has cut its credit rating on First Republic Bank, with warnings of further downgrades to come. This news, along with other events from the US, has the potential to hurt the rest of the world.
He said, “The stock (First Republic) year-to-date is down 81 percent and S&P has cut its credit rating to junk status and has warned that another rating downgrade is possible.”
According to him, there are still opportunities for savvy investors to capitalise on, even in difficult times. By staying informed and maintaining a long-term perspective, investors can navigate the current challenges and position themselves for success in the years to come.
Also Read | US Federal Reserve, European Central Bank try to calm markets after UBS deal to buy Credit Suisse
(Text input from Reuters)
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