EBA shines spotlight on dangers of yield search

By Owen Sanderson
03 Apr 2014

The European Banking Authority has highlighted the “search for yield” as a danger for Europe’s banks, warning in a report published this week that “risks of overvaluations with sudden, potentially substantial repricings and spread movements remain”.

It also flagged up EM risks, and problems with imbalances in highly rated sovereign and sub-investment grade corporate markets as risks facing European banks and financial institutions.

The EBA, in a joint report between it and the other European supervisory bodies (European Securities and Market Authority and European ...

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