Shares of banks and financial institutions experienced a boost as asset managers posted strong earnings. Wall Street alternative-asset manager, KKR, saw a rally in its third-quarter profits, increasing its assets under management despite the market’s volatility. Rival company Carlyle Group, however, reported a significant drop in third-quarter revenue, reflecting the slower pace of dealmaking.
UBS Group’s Rise Amidst Rescuing Credit Suisse
Investors remain optimistic about Swiss banking giant UBS Group’s ability to rescue crosstown rival Credit Suisse, leading to a rise in the company’s stock value. However, UBS faced a third-quarter loss of $785 million, in contrast to the prior year’s net profit of $1.73 billion.
WeWork’s Bankruptcy and Precipitous Decline
WeWork, once considered the nation’s most valuable startup with a valuation of around $47 billion, has filed for bankruptcy. This marks the collapse of the flexible-office-space venture, signifying a dramatic downfall.
Signature Bank’s Asset Sale Signals Property Price Erosion
The sale of Signature Bank’s $33 billion in commercial-property loans and other assets is expected to attract bids significantly below face value, highlighting the erosion of property prices. This serves as new evidence of the weakened market conditions.
Analysts Observe Decreased Demand for Loans
According to analysts at brokerage Goldman Sachs Group, both commercial and industrial loans for firms of all sizes, as well as commercial real estate loans, have experienced weakened demand. They also note that banks reported tighter standards for all categories of residential real estate loans and consumer loan categories on the household side.
