Oct 1, 2020 | European Economy
The ECB has repeatedly stressed the primacy of its PEPP asset-purchase program in tackling the economic impacts of Covid, despite the importance of the bank-lending channel for the European economy, given the high degree f financial intermediation. The decision taken...
Oct 23, 2017 | US Economy
In August, we had reviewed a few charts showing that US high yield valuations were divorced from fundamentals, as well as to other yield products. This week, refreshing those charts, we can see that things are just as bad. US high yield seems to be the most vulnerable...
Jun 10, 2017 | US Economy
We are seeing multiple signs of a slowdown in lending in the US, as discussed in our recent thematic US Banks Stocks: Exposed to the End of the Credit Cycle. The top chart shows a coincident relationship between sales-to-inventory ratios and C&I lending. As...
Apr 28, 2017 | US Economy
Over the past few weeks we have expressed scepticism on the Trump reflation trade and we have argued that bank stocks should underperform. We have shown previously that when you look at the 3 and 6 month change in Commercial & Industrial lending as well as the...
Mar 18, 2016 | US Economy
You can take a horse to water, but you can’t make it drink. This is generally the mistake made by many when it comes to credit. If you expand the availability of credit, and make it more attractive, then more people will want credit. But this is rarely the case. ...
