Why Risk Appetite Is Back | Alfonso Peccatiello, Michael Kantrowitz, Andy Constan & Jack Farley
Forward Guidance
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The Lever Business Model in Europe - What Is It?
Real wage growth in the us was negative. In europe it was much more negative because of rigidities in the labor market and because the inflation composition was much more energy and food driven than aggregate demand driven. An old in borrowing rate for a high heeled company in europe was roughly three %. So you had a combination of very low riskry real rates and low credit spreads on top. And this was basically the result of trisk free rates being extremely low and also priced to be extremely low for five to ten years in europe. Now, these companies were able to effectively carry on with the lever business model despite pretty tight margins, mostly because of that. But the situation dramatically
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