Bank : AT1 – 2022, Unbridled optimism?

For this traditional AT1 update at the start of the New Year, we are torn between: 1/ enthusiasm about the fundamentals of the banks that drove performance in this sector in 2021, across all asset classes. Indeed, European banks, which will in the weeks ahead release their full-year 2021 results, are expected to report record MDA levels. At the same time, AT1s are showing some of the lowest spreads and yields ever; and 2/ some reservations concerning future performance. Because e...