High credit risks in the United States | 01 March 2021

01 March 2021, GBP/USD

High credit risks in the United States

GBPUSD trading plan:

Credit risk for large, syndicated loans has increased over the last year, according to the 2020 Shared National Credit Review released by U.S. federal bank regulatory agencies. The elevated risk is largely attributed to the effects of COVD-19. While risk has increased, many agent banks have strengthened their risk management systems since the prior downturn and are better equipped to measure and mitigate risks associated with loans in the current environment. The 2020 SNC portfolio included 5,652 borrowers, totaling $5.1 trillion in commitments, up 5.0 percent from a year ago. Nearly half of the total commitments were leveraged loans. In response to the increase in loan risks, banks substantially increased their loan-loss reserves, and aggregate capital in the system has risen by nearly a percentage point since March of 2020.

Investment idea: range 1.3955 -1.4035.

David Johnson
Analyst of «FreshForex» company
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