reported at Credit Suisse led investors to panic-sell bank stocks — even those without financial issues., given that they'd be more vulnerable in a banking crisis than diversified giants like Bank of America and JPMorgan.
The firm announced in a March 15 note that it's initiating coverage of 19 mid-cap banks based in the US. However, it only issued buy recommendations for five of them and gave the rest sell or neutral grades. For context, the market issues buy ratings to 60% of mid-sized US banks.Banks have many headaches ahead of them, a trio of UBS analysts led by Brody Preston wrote in the note.
"We think persistently higher rates are likely to be a net negative for credit/earnings at mid-cap banks in the medium-term," Preston wrote.In the wake of Silicon Valley Bank's meltdown, Preston and his colleagues came up with three pivotal questions that, when answered, give insight into what's next for the banking industry.