A sequence of credit losses, some tied to poor underwriting, possibly even fraud, has triggered sharp volatility in equity and credit markets. When banks’ balance sheets show significant hidden risk, it often means the financial cycle is advancing to a less comfortable phase. In this instance, the central bank stepped in, with the Federal Reserve reportedly making more than US$15 billion available mid‑week to ease liquidity strains.
We are in an environment where investor risk appetite remains elevated, fuelled by artificial intelligence enthusiasm and strong corporate earnings projections, yet the backdrop is fraught, a looming government shutdown, elevated valuations, and geopolitical trade tensions.
It is also worth noting that this episode occurs while earnings for the third quarter are still beating low expectations, and although the impact of tariffs and tougher external conditions remain a concern, many companies have been demonstrating resilience. That suggests the banking weakness is less about immediate widespread corporate stress and more about sector‑specific vulnerabilities, namely the quality of lending and loan‑book oversight among smaller institutions.
TEAM plc (LON:TEAM) is building a new wealth, asset management and complementary financial services group. With a focus on the UK, Crown Dependencies and International Finance Centres, the strategy is to build local businesses of scale around TEAM’s core skill of providing investment management services.
