Rumours fly, opinions split as FIG market awaits its test results

Natwest cover
By Graham Bippart
23 Oct 2014

Senior figures in the European FIG market were oddly calm heading into what is perhaps the biggest regulatory event in Europe since the crisis era began: the release of the results of the European Central Bank’s comprehensive assessment of 130 banks on Sunday. Nonetheless, investors are bracing themselves for what is likely to be at least a short term bout of increased volatility after the results.

Whether the ECB can successfully balance the political need to prove its effectiveness as the area’s new single supervisor with its economic goal of instilling confidence in the banking sector and managing the stability of financial markets is still a matter of wide dispute.

Three days of rallying ...

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