Over the last month, the banking sector has seen a spate of turmoil triggered by concerns over the possible effects of the steep rise in interest rates. Among possible consequences, we see scope for adjustments to the current regulatory regime to reinforce confidence. More broadly, recent events highlight the magnitude of the transition underway after a long period of exceptionally low interest rates.
In this special edition of our Talking heads podcast, chief market strategist Daniel Morris asks Séverine Piquet, head of credit research, for her assessment of the developments in the financial sector. She points to the kneejerk anxiety in markets and underlines the importance of the ‘measured backstop’ provided by the authorities.
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Please note that articles may contain technical language. For this reason, they may not be suitable for readers without professional investment experience.
Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. This document does not constitute investment advice.
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