© Reuters.
By Alessandro Albano
Investing.com – The possible closure of the deal between Credit Suisse (NYSE:) and UBS (NYSE:) has not allayed worries about the banking sector after the warning from the German institute, Deutsche Pfandbriefbank (ETR:) which decided not to call its 300 million euro AT1 bond.
This was done due to “market conditions” and “economic costs, as explained by DPAG, but which is undermining market confidence in the sector’s ability to repay the subordinated debt, which depreciated sharply after the 16 billion of Credit Suisse’s AT1, as can also be seen from the surge in CDS on European banks.
In Milan, UniCredit (BIT:)Monte dei Paschi (BIT:) and Bpm (BIT:) drop 4%, while Intesa Sanpaolo (BIT:) loses 3%. Only titles related to health are saved on the, such as remember (BIT:) e DiaSorin (BIT:)
Widespread sales also in Europe, where it falls by 3%. The reductions in Germany were particularly heavy, with Deutsche Bank (ETR:) down 8% and Commerzbank (ETR:) down 5%.
In London, Barclays (LON:) e HSBC Holdings (LON:) lose 3.8% and 3%, while in Paris BNP Paribas (EPA:) e Credit Agricole (EPA:) mark declines of about 3% each.
The general context of the markets in 2023 is characterized by a “leading volatility, with average daily fluctuations (understood as variations from the highs to the lows of the day) which record marked increases in this month of March, positioning themselves behind only the main crises of the century. A sign of decided investor uncertainty, despite a positive year-to-date performance,” he writes Gabriele Debach, analyst at eToroare Investing.com.
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