Capturing European banks' improving fundamentals

Strong capital ratios despite challenging share prices

clock • 3 min read

As the spread of Covid-19 has caused an unprecedented shutdown of global economic activity, investors are faced with heightened uncertainty and as a result yields across risk assets have moved materially higher in 2020.

During this period, central banks have expanded their toolkits including unprecedented fiscal stimulus packages with the aim of supporting the economy as companies and individuals face challenging times. With government bond yields generally falling and yields in risk assets rising, the amount of negative yielding debt outstanding has fallen to $8.9trn. Among the current backdrop, investors may consider searching for income in sectors that offer an attractive yield and demonstrate improving fundamentals. Central bank policy and the low interest rates experienced in recent years has...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Europe

MainStreet Partners' Daniele Cat Berro: Europe's good intentions and poor execution

MainStreet Partners' Daniele Cat Berro: Europe's good intentions and poor execution

'Chronic slowness' undermining efforts

Daniele Cat Berro
clock 03 July 2025 • 4 min read
Eurozone inflation rises to 2% in June

Eurozone inflation rises to 2% in June

Up from 1.9% in May

Sorin Dojan
clock 01 July 2025 • 2 min read
Disinflation drives ECB rate cut but investors warn of limited space for further trims

Disinflation drives ECB rate cut but investors warn of limited space for further trims

25bps cut

Sorin Dojan
clock 05 June 2025 • 2 min read
Trustpilot