(Bloomberg) — Beneath the calm surface of the US corporate bond market, there are worrying signs about companies that could lose their investment-grade status. The first full week of the year has been one of the busiest for US corporate debt sales on record, and risk premiums stayed low even amid heavy issuance. But the amount of bonds teetering on the brink of junk surged last year, according to JPMorgan Chase & Co. (JPM) Most Read from Bloomberg Around $63 billion of US corporate bonds in the high-gr ...

Group 1 - Goldman Sachs raised the price target on Synchrony (SYF) to $98 from $85 while maintaining a Buy rating on the shares [1] - Regional banks underperformed the market by 200-300 basis points in 2025 due to macro concerns and credit worries, although stocks rallied 13% late in the year [1] - Looking ahead to 2026, factors such as solid loan growth, net interest income momentum, positive operating leverage, and improving returns indicate continued multi-year fundamental improvement, with credit risk being the main wildcard [1]

Group 1 - Goldman Sachs lowered the price target on UWM Holdings (UWMC) to $5 from $6 while maintaining a Neutral rating on the shares [1] - Regional banks underperformed the market by 200-300 basis points in 2025 due to macro concerns and credit worries, despite a 13% rally in stocks late in the year [1] - For 2026, factors such as solid loan growth, net interest income momentum, positive operating leverage, and improving returns indicate continued multi-year fundamental improvement, with credit risk being the main wildcard [1]

Key Takeaways MELI's credit book remains early in seasoning, raising default volatility as portfolios mature into 2026.Macro strain adds risk: Argentina inflation hit 31.4%, and Mexico's 2026 GDP outlook was cut to 1.5%.MELI's funding costs rose in Argentina as election-driven volatility weighed on risk-adjusted returns.MercadoLibre (MELI) enters 2026 with a credit profile that is materially exposed to borrower stress, funding cost swings and macro volatility, as lending expansion becomes the dominant drive ...

This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Buy now, pay later company Klarna Group was sued in federal court by a shareholder last month in a complaint that seeks class action status.  The lawsuit lodged in U.S. District Court for the Eastern District of New York alleges that investors suffered losses when the Klarna’s stock declined after a September initial public offering. The stock drop followed the com ...

Wall Street investors wary of a credit bubble in the artificial intelligence (AI) sector are turning to an unexpected hedging strategy: shorting Oracle Corp. (NYSE:ORCL) , according to Ali Meli, CIO of Monachil Capital Partners.Check out ORCL’s stock price here.The ‘Cheap Proxy’ TradeSpeaking to Yahoo Finance, Meli argued that Oracle has emerged as a “cheap proxy” for investors looking to bet against the credit risks of smaller, private AI infrastructure firms like CoreWeave Inc. (NASDAQ:CRWV) .While concer ...

Michael M. Santiago / Getty Images Quick Read BKLN holds X Corp senior secured loans with a 10.96% coupon representing 1.89% of the portfolio. The fund’s distributions dropped from $1.82 per share in 2024 to approximately $1.41 in 2025 as the Fed shifted toward rate cuts. BKLN returned 6.7% year-to-date through December 29 combining its 6.4% yield with modest price appreciation. A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, t ...

Core Insights - Affirm's stock surged by 10.2% on a day marked by a broader upswing in the buy-now/pay-later (BNPL) and fintech sectors, influenced by a weaker-than-expected jobs report that may lead to lower interest rates [1][4][5] Company Performance - Affirm's CFO Rob O'Hare highlighted a five-year partnership extension with Amazon, which is expected to drive new customer acquisition for both companies [2][6] - The company reported a 34% increase in revenue and a GAAP operating margin of 7% in its most recent quarter, indicating strong growth and profitability [9] - Credit trends remained stable, with delinquency rates consistent with previous years, suggesting that the company's credit model is holding up [10] Market Context - The positive market reaction to Affirm's performance was also reflected in other BNPL and fintech stocks, which experienced gains due to favorable market conditions and investor sentiment [5] - The partnership with Amazon was described as a "win-win," with terms remaining mostly unchanged, reinforcing Affirm's leadership in the industry [6][9] - Evercore ISI maintained an outperform rating for Affirm, with a price target of $95, reflecting confidence in the company's future performance [7]

Core Insights - MercadoLibre has successfully transformed challenges into revenue streams, particularly in online commerce and fintech, but faces emerging challenges that could impact its stock outlook in 2026 and beyond [1][2] Group 1: Financial Performance - In the first nine months of 2025, MercadoLibre's revenue increased by 37% year over year to $20 billion, but the provision for doubtful accounts rose by 58%, indicating rising credit risks [5] - Net income for the same period was $1.4 billion, reflecting a modest 13% increase compared to the previous year, which has contributed to a slower stock price increase of just over 20% in 2025 [6] Group 2: Challenges - High loan defaults in Mercado Pago, the company's fintech arm, have become a significant concern as bad debt accumulates, impacting investor sentiment [4] - Increased competition in e-commerce from companies like Amazon and Sea Limited, as well as local platforms, poses a threat to MercadoLibre's market share and could pressure profit margins [7][8] Group 3: Competitive Advantages - Despite competition, MercadoLibre maintains competitive advantages through its logistics arm, Mercado Envios, which allows for lower shipping costs and faster delivery, helping to attract merchants [9] - The company continues to leverage its first-mover advantage in Latin American fintech and e-commerce, although it must address the issue of unpaid loans to sustain growth [10][11]

Core Viewpoint - M&T Bank Corporation, valued at $30.1 billion, operates as a bank holding company providing a wide range of financial products and services through its various segments [1]. Company Overview - M&T Bank is classified as a "large-cap" stock, offering services such as commercial lending, consumer banking, wealth management, and investment services to a diverse clientele across the nation [2]. Stock Performance - M&T Bank's stock has decreased by 7.3% from its 52-week high of $211.23 and has seen a 1.7% decline over the past three months, underperforming compared to the Financial Select Sector SPDR Fund (XLF) [3][4]. - Year-to-date, M&T Bank shares have risen by 4.2%, which is lower than XLF's 10.7% increase, and over the past 52 weeks, the stock has declined by 7.3%, while XLF has returned 6.1% [4]. Financial Results - In Q3 2025, M&T Bank reported a net income of $792 million, or $4.82 per share, but the stock fell by 3.5% due to increased net charge-offs of $146 million compared to $108 million in Q2, indicating rising credit risk [5]. - Non-interest expenses rose due to $20 million in severance-related costs and an impairment related to a renewable energy tax credit investment [5]. Competitive Position - Rival Citizens Financial Group, Inc. has outperformed M&T Bank, with its stock gaining 27.4% year-to-date and 18.6% over the past 52 weeks [6]. - Despite M&T Bank's recent underperformance, analysts maintain a moderately optimistic outlook, with a consensus rating of "Moderate Buy" and a mean price target of $220.70, suggesting a 12.7% upside from current levels [6].