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Nonbank financial institutions, insurers, and funds are experiencing a variety of “knock-on effects” as the result of the sudden deterioration of a few U.S. banks, underscoring the interconnectedness of the entire financial system, according to Fitch Ratings. In a statement on Wednesday, Fitch described these impacts as “not yet material from a rating perspective.” A number of the second-order effects are related to asset-price volatility, increased scrutiny of unrealized losses, and other factors that could ultimately impact the ratings of those nonbank players, the agency said. Insurance companies rated by Fitch, for…
