The latest Market Talks covering Financial Services. Exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
0719 GMT - The recovery for Indian banks' net interest margins expected from 4Q FY 2026 may be delayed by a few quarters, Nomura analysts say. One reason is that banks' current account savings account ratios are moderating, versus Nomura's previous assumption of stability. This is because depositors are migrating savings into higher-yielding term deposits as rate differentials widen, and digital banking has shown increased effectiveness. Secondly, wholesale funding costs have been rising due to structural deposit tightness. Domestic banks with higher residual liquidity buffers and stronger liability franchises appear best placed in this environment. Kotak Mahindra Bank stands out most clearly, says Nomura, which upgrades the stock's rating to buy from neutral while lowering the target price to 445.00 rupees from 460.00 rupees. Shares are 3.3% higher at 368.20 rupees. (ronnie.harui@wsj.com)
0218 GMT - Malaysia banks are expected to maintain a positive earnings growth trajectory despite Middle East tensions, with only limited indirect impact from potential rate cuts and higher credit costs, CGS International analyst Winson Ng says in a note. Elevated oil prices could trigger Bank Negara to cut policy rates, while BNM may monitor conditions closely before responding to oil shocks, he notes. A 25bps rate cut could reduce sector net profit by about 1.6%, while rising oil prices may lead to higher gross impaired loans, he reckons. However, strong pre-emptive provisions are likely sufficient to cushion potential increases in impaired loans, he adds. CGS maintains an overweight rating on Malaysian banks, saying earnings would be largely defensive against any negative impact from elevated oil prices. It pegs AMMB, Malayan Banking and RHB Bank as top picks. (yingxian.wong@wsj.com)
0201 GMT - Moody's Ratings cuts its rating on FS KKR Capital, a private credit fund run by Future Standard and KKR, to junk, noting its continued asset quality challenges. These have resulted in weaker profitability and greater net asset value erosion over time relative to business-development company peers. The fund's nonaccrual loans rose to 5.5% of total investments at amortized costs as of end-December, one of the highest among rated business-development companies, says Moody's. Other large investments have also been also marked down significantly, the ratings company says. Moody's therefore trims its senior unsecured rating on the fund to Ba1 from Baa3. Still, the fund has sufficient liquidity and well-laddered debt maturities, which leads Moody's to change its outlook on FS KKR Capital to stable from negative. (megan.cheah@wsj.com)
0003 GMT - Apollo Global Management on Monday joined a growing list of business development company overseers that have recently capped investor withdrawals, limiting redemptions to 5% of Apollo Debt Solutions BDC's shares outstanding after receiving requests equivalent to over 11%. The New York firm cited its commitment to manage its net assets of $15.1 billion in the best interests of all investors and the BDC's "designated liquidity objectives," in a securities filing. It intends to honor each withdrawal request on a pro-rated basis, which will mean each investor would get nearly half of what was sought this quarter. Apollo set the 5% limit to reflect the average life of the BDC's underlying assets and the anticipated time span of investor commitments. At the end of last month, the BDC held assets of about $25 billion based on fair market value, according to a separate filing. (ted.bunker@wsj.com)
2337 GMT [Dow Jones]--Commonwealth Bank looks like the Australian bank with the most to gain from AI adoption, according to Macquarie analysts. They think that the lender will initially leverage improved productivity to drive revenue and accelerate change. Taking a narrower view, they reckon that Westpac is the best-placed lender in terms of near-term cost cuts. They tell clients in a note that this is because of its greater reliance on outsourced workforce providers. Overall, they anticipate material AI cost savings across Australia's banking sector, with global peers flagging workforce reductions of about 10% over the next five years. They caution that this could coincide with increased bad debt charges as AI drives job losses. (stuart.condie@wsj.com)
2244 GMT [Dow Jones]-- Apollo Debt Solutions expects to see more performance dispersion among business development companies over the coming quarters, it says in a letter to shareholders. ADS, which is managed by Apollo Global Management, says the structure of non-traded BDCs is meant to provide individual investors with access to senior secured lending, what it calls one of the most compelling segments of the private credit market. "But structure alone does not determine outcomes," ADS says. "Long-term performance is the result of underwriting rigor, disciplined portfolio construction and careful balance sheet management. After all, private credit is still just credit." ADS says it is well-positioned for the current market volatility given its focus on high-quality, large-cap corporate borrowers on a first lien senior secured basis. (kelly.cloonan@wsj.com)
2223 GMT - 1822 - Apollo Debt Solutions BDC addressed recent concerns rocking the private credit market, arguing its fund is well-positioned for this year's heightened market volatility and increased scrutiny on the asset class. "None of this is new to us at Apollo," ADS says in a letter to shareholders, noting that liquidity management, mark-to-market accounting and a recognition of sudden secular shifts are hallmarks of sound risk management, and key to how it manages capital. ADS says its focus on first-lien senior secured lending, downside protection and large-cap corporate borrowers positions it well. "We have made a series of decisions as to how we manage ADS that have put us in a place today to drive future performance as a result of - not despite - the current cycle." (kelly.cloonan@wsj.com)
2203 GMT - Jefferies doesn't share EML Payments's confidence in achieving its FY 2028 financial targets. EML Payments recently reaffirmed goals that include a 35% underlying Ebitda margin, EPS of A$0.13, and a cost-to-income ratio of less than 40%. "We are cautious on these targets, given EML remains modestly behind in FY26, and there is still a risky implementation required in migrating customers to the new tech platform, which may not be completed by FY28," analyst Roger Samuel says. Its price target falls 22% to A$0.78/share. Still, Jefferies retains a buy call on the stock. EML Payments ended Monday at A$0.59. (david.winning@wsj.com; @dwinningWSJ)
1632 GMT [Dow Jones]--Investors view the rising legal challenge to prediction markets as a positive for sportsbooks. Shares of DraftKings and FanDuel parent Flutter Entertainment are both up by a single-digit percentage Monday after a bipartisan bill to limit prediction markets entered the Senate. The bill would ban trading on sports events on platforms such as Kalshi and Polymarket. Wall Street has seen the rise of prediction markets as a major threat to sportsbooks' market share, as Kalshi reported surpassing $1 billion in trading volume last month, boosted substantially by sports wagering. DraftKings and FanDuel have been racing to catch up with their own prediction products. (katherine.hamilton@wsj.com)
1525 GMT - There were an estimated 46.3% more home sellers than buyers in the U.S. housing market in February, Redfin says. That's 630,000 more, in numerical terms, the largest gap in records dating back to 2013 and up from 29.8% a year earlier. When sellers outnumber buyers, buyers typically hold the negotiating power. That's considered a buyer's market, but it's only a buyer's market for those who can afford to buy. High housing costs and mortgage have caused many house hunters to retreat, creating an imbalance of buyers and sellers. The number of homebuyers in the market fell 2.4% month over month in February to an estimated 1.36 million. The number of sellers posted a smaller decline, falling 0.4% to an estimated 1.99 million. (chris.wack@wsj.com)
(END) Dow Jones Newswires
March 24, 2026 04:20 ET (08:20 GMT)
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