Kapstream Capital

Naughty or nice?
December 2011

Concern that the European debt crisis was likely to drag through the first half of 2012, hampering global growth, continued to dominate financial markets in December. While risk aversion remained high, European policy responses and more stable US economic data allowed risk assets to rally somewhat.

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Don't bank on it

May 2011

It hasn't been a particularly good month for bank ratings and bank investors around the world. There have been numerous ratings downgrades, significant haircuts being forced on Irish bank bondholders, spreads have been widening and there are talks of more downgrades to come. The world continues to take a hard look at banks following the global financial crisis. Significant regulatory changes are in the pipeline and agencies continue to tweak their rating approaches. The banks themselves were one of the major causes of the crisis (along with rating agencies) and warrant restructuring, tighter regulation, more transparency and higher liquidity and capital standards. This process of change is underway but it will take a few years. This month has been a reminder that things will be changing.

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