FIXED INCOME STRATEGY – GLOBAL BANK STRESS TEST ASSESSMENT
Exposure to the banking sector is a key strand of the London& Capital Fixed Income strategy. As the Covid-19 crisis has escalated, the sector has come under pressure, along with other credit sectors.
Several points are worth highlighting in light of recent market moves are:
- The market stress has come from the Covid-19 pandemic, and the expectation is that it will push the global economy into recession. The global banking system has not been at the centre of these developments, unlike the Great Financial Crisis (GFC).
- The DW banking sector is extremely strong, and this can be seen by the extremely high CET1 and Leverage ratios, typically around 13.5% and 5.5% respectively.
- London & Capital Strategy is geared to only the strongest of the global DW banks, the G-SIBs and national champions, see the appendix for the list of our selected banks below.
- The authorities (central banks, the IMF and governments) have made it clear that policy is prioritised to ensure that credit continues to flow through to the real economies during these extraordinary times and to do this, banks must be the lifeblood of the economic system.
To read the full article, please click here.
For further information or to speak to a member of the staff please give us a call on +44 (0) 207 396 3200 or alternatively e-mail firstname.lastname@example.org
The value of investments and any income from them can fall as well as rise and neither is guaranteed. Investors may not get back the capital they invested. Past performance is not indicative of future performance. The material is provided for informational purposes only. No news or research item is a personal recommendation to trade. Nothing contained herein constitutes investment, legal, tax or other advice.
Copyright © London and Capital Asset Management Limited. London and Capital Asset Management Limited is authorised and regulated by the Financial Conduct Authority of 12 Endeavour Square, London E20 1JN, with firm reference number 143286. Registered in England and Wales, Company Number 02112588. London and Capital Wealth Advisers Limited is authorised and regulated by both by the Financial Conduct Authority of 12 Endeavour Square, London E20 1JN, with firm reference number 120776 and the U.S. Securities and Exchange Commission of 100 F Street, NE Washington, DC 20549, with firm reference number 801-63787. Registered in England and Wales, Company Number 02080604