Banks and corps re-correlate after euro crisis split
The fate of corporates and the banks that serve them is intertwined, that much is clear from the past decade. But though the correlation is close, it’s certainly not one-to-one, writes IHS Markit's Gavan Nolan.
Governments have a major role to play in post-crisis economies and their various layers of intervention can dislocate banks from trends in corporate profitability. The stage of the credit cycle can also affect relative performance.
If we look the relationship from a credit perspective, we can see
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