Could Moody's downgrades be steering banks back into 'doom loop'?

Regional bank stocks are reacting to Moody's downgrades on small and mid-sized U.S. banks. After banking instabilities led to the closure and consolidation of several regional banks earlier this year, experts are worried the banking system may be on course for another "doom loop" cycle. "Moody's made a specification note that these unrealized losses continue to increase, which puts pressure on the banks' balance sheets and therefore have to raise reserves to offset those losses plus other losses they're probably facing on the real estate portfolios," Ben Emons, NewEdge Wealth Senior Portfolio Manager and Head of Fixed Income & Macro, explains to Yahoo Finance Live. Emons breaks down the impact Fitch Ratings and Moody's downgrades will have on bank stock prices and Treasury yields.
#Moody's

About Yahoo Finance:
At Yahoo Finance, you get free stock quotes, up-to-date news, portfolio management resources, international market data, social interaction and mortgage rates that help you manage your financial life.

Yahoo Finance Plus: With a subscription to Yahoo Finance Plus get the tools you need to invest with confidence. Discover new opportunities with expert research and investment ideas backed by technical and fundamental analysis. Optimize your trades with advanced portfolio insights, fundamental analysis, enhanced charting, and more.

Connect with Yahoo Finance: