The end is in sight for large banks’ losses related to the US sub-prime mortgage market, Standard & Poor’s predicted yesterday, as it suggested that more than half of the expected $285bn in losses has already been disclosed. Financial Times

The prediction, which helped cheer stock markets, represents a bold call as banks continue to be gripped by concerns about further losses, and Wall Street banks prepare to unveil their first-quarter results next week.

S&P analysts said banks might face some additional writedowns on their subprime mortgage exposure in the first quarter, but suggested that the worst of the losses may have already been recognised.