How to separate the banking wheat from the chaff
Valuations reached all-time lows in 2020 on a price/book value basis
Banks
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Santander ups investment banking ambitions
‘Our European clients want to see European banks with them’
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Pandemic tests resiliency of European banks
While balance sheets mostly remain strong, profitability was already weak going into the current crisis
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European banking sector set to attract swathe of investors
Unlike 2008, they are a key part of the solution to this crisis rather than the cause of the problem
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Distressed leveraged finance ratios hit 2011 high
As banking sector is largely exposed to leveraged loans and marginally to high yield bonds
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EU auditors say 2018 bank stress tests not stressful enough
The European Court of Auditors suggests tests were too easy on some banks with others left out altogether
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Global regulator concerned at high yield fire sale in downturn
Bank for International Settlements concerned low grade credit makes up 45% of issuance in Europe.
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‘Opportunities in European banks favour debt over equity’
Capital levels are five times higher than before the financial crisis, according to Merian’s Lloyd Harris
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European banks ‘still facing strong headwinds’
New regulations and stiff competition will continue to squeeze European banks, according to Aegon Asset Management
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Scepticism is a virtue
When faced with a crossroads in the market, it may pay to be cautious about forecasting macro, argues Ian Heslop, head of global equities at OMGI and manager of the Old Mutual North American Equity Fund
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Another blow to Swiss secrecy
Plans to scrap a class of anonymous shares in Switzerland could deal another blow to the country’s traditionally secret banking practices.
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Investors should reconsider Chinese banks
While the Chinese banking sector has been overshadowed by non-performing loans for years, investors should reconsider the sector in 2018, Pictet Wealth Management believes.