BRIEF-Fitch Says U.S. Banks Improve Irr Management Well-Positioned For Anticipated Rate Cuts

BY Reuters | CORPORATE | 09/18/24 02:55 PM EDT

Sept 18 (Reuters) -

* FITCH: U.S. BANKS IMPROVE IRR MANAGEMENT; WELL-POSITIONED FOR ANTICIPATED RATE CUTS

* FITCH ON U.S. BANKS: SHORTER ASSET DURATIONS WILL LEAD TO FASTER REPRICING OF FIXED-RATE ASSETS, POTENTIALLY INCREASING NET INTEREST INCOME VOLATILITY

* FITCH ON US BANKS: EXPECT ACTIVE CASH FLOW HEDGING TO MITIGATE THIS IMPACT BY NARROWING DURATION GAP BETWEEN ASSETS & LIABILITIES Source text for Eikon: Further company coverage: [ ]

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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