Subprime Sentiment

Amid the rubble, S&P sees opportunities in higher-quality banks

Only two weeks after a 3.5% one-day drop in the S&P 500, the market suffered another 2% decline, triggered by a Mortgage Bankers Association (MBA) report of an increase in subprime and prime delinquencies and by a weaker-than-expected retail sales report. All 10 sectors in the S&P 500 took a hit on Mar. 13, with the S&P 500 financials sector down the most on the day (-3%), while energy held up best (-1.2%).

To continue reading this article you must be a Bloomberg Professional Service Subscriber.