BES spreads fund caution on peripheral banks ahead of AQR

BES crisis 230x150
By Hazel Sheffield
26 Aug 2014

Fund managers are taking long positions on peripheral banks cautiously, expecting an imminent European balance sheet review to reveal further inconsistencies similar to those at Banco Espirito Santo, which resulted in the Portuguese government splitting the bank.

The European Central Bank is conducting an asset quality review on bank balance sheets prior to becoming the EU’s official bank supervisor in early November. The review will feed into a separate stress test of how balance sheets could respond to stressful economic conditions.

While the BES situation was ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial