Solvency

According to Bob Jolly, Schroders’ Head of Global Macro, considerable bad news is already in prices and corporate bonds issued by strong companies with cash on their balance sheet and pricing power remain attractive

According to Fitch, capital outflow from Russia has increased sharply in the 4th quarter, but does not currently seem high enough to affect the country’s BBB rating...

Saxo Bank has today released its annual Outrageous Predictions. Among the unlikely events predicted by the Bank are that Australia will go into recession, Basel III and regulation will force 50 bank nationalisations in Europe and Apple shares will plummet 50 percent from their 2011 high.

The layoffs have unquestionably impacted the personnel of the French banks but a greater malaise reigns. A top ranked outgoing senior executive considers the current situation as symbolizing an unprecedented weakening of French banks…

Even in the seemingly unlikely case that a comprehensive solution to the sovereign crisis is found, the changed regulatory backdrop is a major challenge for the banks, and probably for the economy as a whole.