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JPMorgan analyst Vivek Juneja reacted to the Federal Reserve’s annual stress test results for U.S. banks, highlighting a substantial increase in stress capital buffers (SCB) for large-cap banks. This increase may delay or reduce long-term capital return plans. Citigroup fared well, while Goldman Sachs and Wells Fargo faced significant SCB increases. U.S. Bancorp was downgraded from Overweight to Neutral. Bank ETFs like XLF fell, while regional banks outperformed.

Portfolio Pulse from Hayden Buckfire

June 27, 2024 | 8:38 pm

SPY

XLF

A recent stress test reveals that banks' corporate credit portfolios have become riskier, leading to downgrades of their own loans and higher projected corporate losses.

Portfolio Pulse from Benzinga Newsdesk

June 26, 2024 | 8:34 pm

EFTR

eFFECTOR Therapeutics has been declared in default on a $75M loan from Oxford Finance. The default notice cites material adverse changes and insolvency, making all obligations immediately due and payable with interest accruing at the default rate.

Portfolio Pulse from Benzinga Newsdesk

June 26, 2024 | 10:05 am

XXII

22nd Century Group has reduced its secured debt by $1.5 million through the paydown of a GVB secured promissory note, with the remaining $500,000 extended to December 31, 2024. The company's total outstanding debt is now $8.3 million, down from $15.8 million at the end of 2023.

Portfolio Pulse from Benzinga Newsdesk

June 25, 2024 | 9:08 pm

SPY

Fed's Cook expects economic growth to remain near the potential growth rate, slightly above 2%. Rising credit card and auto loan delinquencies are not yet concerning but should be monitored. Cook is optimistic about innovation and productivity, which could allow for faster non-inflationary growth. The financial system is not currently positioned to amplify future shocks.

Portfolio Pulse from Benzinga Newsdesk

June 25, 2024 | 4:12 pm

RGS

Regis Corporation has entered into a new senior secured credit facility with TCW Asset Management, which includes a $105 million term loan and a $25 million revolving credit facility. This move reduces Regis' outstanding debt by over $80 million and saves approximately $7 million in annual cash interest.

Portfolio Pulse from Benzinga Newsdesk

June 25, 2024 | 10:36 am

AMC

AMC Entertainment Holdings, Inc. has initiated discussions with its lenders to reduce its debt and extend the maturities of its obligations. This move is aimed at improving the company's financial stability.

Portfolio Pulse from Benzinga Newsdesk

June 21, 2024 | 7:53 pm

UTEN

The Congressional Budget Office (CBO) has warned that federal interest costs are now higher than defense spending, with deficits expected to remain above 5.5% of GDP until 2034. The federal deficit is projected to rise to $1.9 trillion in 2024, up from $1.5 trillion estimated in February. By 2034, debt held by the public is expected to total $50.7 trillion, equating to 122% of GDP. Rising interest costs are the main driver behind these deficits, with net interest outlays projected to reach $1.7 trillion by 2034. The CBO's projections indicate persistent high deficits and escalating interest costs, posing significant financial strain for the U.S. government.

Portfolio Pulse from Piero Cingari

June 19, 2024 | 4:44 pm

BGS

B&G Foods plans to amend and extend the maturity date of its existing Tranche B term facility under its senior secured credit facility. The company will use the proceeds to refinance existing loans and repay a portion of its revolving loans. Additionally, B&G Foods intends to decrease the size of its revolver capacity and extend the maturity date of its revolving credit facility.

Portfolio Pulse from Benzinga Newsdesk

June 18, 2024 | 9:51 pm

MMM

Moody's has affirmed all ratings of 3M Company and changed its outlook from negative to stable.

Portfolio Pulse from Benzinga Newsdesk

June 18, 2024 | 7:12 pm