ZION - Regional Banks On Watch After New York Community Bancorp's Disastrous Q4 Earnings Report
2024-02-07 19:56:43 ET
Summary
- The VIX tends to breach 40 only during times of extreme market distress, such as the 2008-2009 Financial Crisis and the onset of the COVID-19 pandemic.
- A potential catalyst for pushing the VIX above 40 in the near future could be another financial crisis, similar to what occurred in 2008-2009.
- The regional banking sector is facing concerns about loan losses associated with the commercial real estate sector, which could lead to further erosion in earnings and potential bank failures.
By Andrew Prochnow
The VIX hasn't surpassed 40 since April 2020, nearly four years ago. Prior to that, it hadn't exceeded 40 since September 2011, and even then, it only barely surpassed that threshold. The last significant surge in the VIX, akin to the onset of the COVID-19 pandemic, occurred during the 2008-2009 Financial Crisis....
Regional Banks On Watch After New York Community Bancorp's Disastrous Q4 Earnings Report