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Below are key European banking risk monitors, which are included as part of Josh Steiner and the Financial team's "Monday Morning Risk Monitor".  If you'd like to receive the work of the Financials team or request a trial please email .

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European Financial CDS - Europe's financial system continues to heal. Swaps tightened notably last week with an average decline of 9 bps and a median decline of 10 bps. Spanish, Italian, French and German banks all saw swaps tighten sharply. 

European Banking Monitor: Portugal Continues Inflection - zz. bankk

Sovereign CDS – Portuguese swaps remain one of the few areas globally that continues to show steady signs of deterioration. Portugal's swaps rose another 24 bps last week, bringing the spread to 557 bps. They were higher by 24 bps last week and are now up 122 bps vs the prior month. Elsewhere around the world, swaps were largely uneventful with the next largest move coming from Italy at +6 bps W/W. 

European Banking Monitor: Portugal Continues Inflection - zz. sov1

European Banking Monitor: Portugal Continues Inflection - zz. sov2

European Banking Monitor: Portugal Continues Inflection - zz. sove3

Euribor-OIS Spread – The Euribor-OIS spread was unchanged at 13 bps last week. The Euribor-OIS spread (the difference between the euro interbank lending rate and overnight indexed swaps) measures bank counterparty risk in the Eurozone. The OIS is analogous to the effective Fed Funds rate in the United States.  Banks lending at the OIS do not swap principal, so counterparty risk in the OIS is minimal.  By contrast, the Euribor rate is the rate offered for unsecured interbank lending.  Thus, the spread between the two isolates counterparty risk. 

European Banking Monitor: Portugal Continues Inflection - zz. euribor