Impact of France’s political crisis on credit

·       In the midst of a renewed and strengthened political crisis in France, what have we seen in the credit market recently ?·    1/ Financials have been more hit (once again) than corporates, confirming our call that sensitivity of the former to OAT-Bund is 2x as much as the one of the latter·  2/ French AT1s have widened by almost 18bp vs swap in 3 days, largely underperforming their index (20bp underperformance had been seen in June 2024)… mainly due to equity correlations·   3/ RT1s have hardly reacted so far, which put them at risk keeping in mind the June 2024 movement (although disso...

フランス：政府崩壊後の Q&A

Office: Europe review and Paris deep dive

At the European levelsTake-up approaching 2022 peak, with German, UK and Dutch markets particularly activeHowever, vacancy has not stabilized yet…… particularly in Bottom Tier 1 locations, highlighting a deepening of the polarization topic (see our previous study Don’t throw performing office districts with the bathwater, from July 2024 for more detailsPrime yields are stabilizing around 5.2% in Europe… but the fair-value might decompress further next year as LT Govt yields are still on the riseAt the Paris Region levelVacancy is rising and should exceed 10% by year-end, while incentives are a...