Despite improving economic conditions in Europe, regional EU banks along with their Japanese counterparts are expected to lag the profitability of their US competition, a Moody’s report predicts. In part, the analysis may point to a nuanced relative value trade, but also highlights the impact negative rate policy has in yield sensitive industries – and how the impact can be initially cushioned but ultimately there is a point where the market catches up. Negative Rate Policy will hurt EU and Japanese banks, while US banks could see profits as rates rise When interest rates in Europe initially went negative, there…
Moody's: Negative Interest Rate Region Banks To Lag US Banks In Profitability
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.