Bank analysis takes more than one ratio
We do not usually comment on press articles, but we were all quite surprised to read a piece on Bloomberg titled “A fragile banking system won’t make Europe stronger”.
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TwentyFour Blog
In the spotlight: European Parliament election
When market participants were asked at the end of last year to enumerate the main risks investors would face in 2024, the vast majority of those surveyed counted politics and elections amongst the top factors to consider for the unrewarding task of forecasting total returns for major asset classes over the following twelve months.
May inflation preview
In spite of what looks like a quiet week ahead, there are a couple of data releases in the coming days that require close attention, these releases could potentially disturb the fragile calm that we are enjoying in the first trading hours of the week.
ABS and CLOs break 2.0 issuance records
The European asset-backed securities (ABS) market saw a record issuance last week with €5bn of primary issuance.
Navigating UK inflation
The UK’s Office for National Statistics (ONS) released their monthly inflation report this morning. In spite of April’s numbers showing a marked decrease in most inflation measures, it is fair to say that the report was significantly worse than expectations.
ECB wage data - can I get a raise?
The European Central Bank (ECB) will almost certainly start their rates cutting cycle next month. Supportive inflation data and clear guidance from the governing council has driven market implied probabilities of a June cut to almost 100%, with little in the way to derail that.
What's instore for the CPI release?
The most important event this week is likely to be this Wednesday’s US Consumer Prices Index (CPI) release.
The alternative: AAA CLOs
Following an incredible 2023, collateralised loan obligation (CLO) investors are again having a great year with the asset class outperforming the more traditional asset classes.
Don't miss out on scarcity premium in AT1s
The first four months of this year have seen €11.6bn in gross Additional Tier 1 (AT1) issuance from European banks, across euros, dollars and sterling markets.
Not much change at the Fed – so, what now?
The Federal Open Market Committee (FOMC) meeting was a relatively uneventful one, but there are a few points worth highlighting.
European banking M&A gathering pace
Recently, BBVA announced that it had approached the management of Banco Sabadell, to explore a possible merger between both entities, with BBVA also appointing advisers for this purpose.
Don't forget about money supply measures M1 and M2
Money supply measures such as M1 and M2 enjoyed a relatively brief period of fame and glory just after the pandemic.