Share prices of euro-zone banks have fallen markedly since the level of risk perception started to rise significantly (in March 2018). This development shows that risk aversion is bad for euro-zone banks: It drives down long-term interest rates and flattens the yield curve; It pushes up the premia that the banks pay on their bonds; It may lead to a permanent situation of negative interest rates on excess reserves.
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Natixis
Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.