Is it Time for European Banks to Shine? w/ Seamus Murphy
Real Vision: Finance & Investing
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The Impact of Interest Rates on European Banks
We've been exceptionally bullish on European banks for the last 12 months. The stocks have done well, but they haven't actually re-rated from an earnings perspective. We look at German front book corporate rates are up 350 basis points. If you want a loan in Germany today, you're paying 350 basis points more. So that's more positive for the banks, assuming they can manage their risk. And as we do get this push on rates and we do get the coverage ratios converge, how bad will it be for the corporate credit cycle? On the basis of the banks having lost market share for a decade, just wonder, who has access to these loans now? It's not only the
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