Shares of banks and other financial institutions fell as private-credit worries simmered ahead of earnings in the sector.
Goldman Sachs is set to report earnings on Monday. JPMorgan Chase, Citigroup and Wells Fargo will follow Tuesday. Investors are awaiting the banks' views of how Iran war and private-credit scares will affect broader financial and economic activity.
Shares of private-credit firm Blue Owl hovered around recent lows. Large banks including JPMorgan Chase are preparing to offer a new way for investors to bet against managers of private-credit funds.
The CDX Financials credit-default swap index will include private-credit funds managed by Apollo Global Management, Ares Management and Blackstone, comprising 12% of the index, which also includes insurers, regional banks and credit-card companies.
It's another echo of the mortgage meltdown in 2008, when credit-default swap indices were closely watched.
Research firm A.M. Best warned the investment portfolios of insurers that sell annuities hold more risky debt than they did in 2007, the year before the worst downturn since the Great Depression.
Life insurers' risk of failure to pay claims is rising, the firm warned.
The day after President Trump announced a sudden pause of strikes against Iran last month, the White House warned staff against improperly leveraging their positions to place well-timed bets in futures markets.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
04-10-26 1747ET
