What Next for the Banking Sector?
The sub-prime mortgage crisis is still claiming victims, with the major US banks suffering billions of dollars of losses. Morgan Stanley took a hit last week, the investment bank reporting a $3.7 billion loss during September and October, while Citigroup has already written down $11 billion.
In the UK, headlines have centred on the Northern Rock crisis and the subsequent decision by the Bank of England to supply emergency funding. However, the majority of UK banks have yet to reveal the full impact of the credit crunch, though HSBC has reported $3.4 billion of bad debts in its third-quarter schedule.
Take a view with a sector bet
The UK banking sector is one of 35 sector bets offered by IG Index, allowing you to take an industry-based view on related stocks rather than basing your trade on a specific company.
With a spread bet you can profit whatever the fortunes of the sector: if you think the investment banks have seen the worst of it you could 'buy', while if you believe there are more unpleasant surprises on the horizon you might choose to 'sell'.
Like betting on individual shares, you can take a short- or long-term view with either a Daily or Quarterly Bet. To find out more see our Dealing Handbook
The above comments do not constitute investment advice and IG Index accepts no responsibility for any use that may be made of them.
Updated 14 November 2007