Markit • Mon, Nov. 3
Stressful Times For Banca Monte Dei Paschi Di Siena: Investors Should Look ElsewhereDon Dion • Wed, Oct. 29
- BMPS flunked the ECB’s stress test with a $2.6bn capital shortfall; shares fell 20% on the news.
- Prior to the failed test, however, BMPS posted nine straight quarters of losses.
- While BMPS, in collaboration with the Italian government, has outlined a plan for recovery, we suggest investors steer clear and consider alternative, growing financials as 2014 comes to a close.
There are no Transcripts on BMDPF.
Nov. 28, 2013, 1:22 PM
- The exposure of Europe's major financial institutions to domestic sovereign debt is on the rise, "now 9% of assets, up from a trough of 6% in September of 2009," FT writes.
- Data from Citi shows European banks' total exposure (as a percentage of their balance sheets) to the general government debt of the country in which they are domiciled is generally below peak levels but is still well above the historical average for most of the periphery including Spain, Italy, Portugal, and Ireland.
- "Although increased exposures are clearly part of ‘financial repression’ and ‘carry trade’, part of this is also a ‘natural’ trade-off from ongoing balance sheet deleveraging," Citi says.
- Europe financials ETF - EUFN
- Relevant European financials: DB, SAN, BBVA, NBG, BMDPF
Jun. 26, 2012, 8:13 AM
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