Financial credit differs from corporate credit because banks operate through layered capital structures, constantly reassessing borrower risk and holding capital against potential losses; Within that structure, AT1s sit just above equity, offering higher yield. European banks are now fundamentally stronger than in past cycles, supported by tighter regulation, stress testing, improved profitability and better asset […]

Iran – Open for de-escalation Last week’s developments in the Middle East reinforced the market’s optimistic stance and added further fuel to the rally, as Iran and the US were reported to be moving closer to a one-page memo aimed at ending the war. Iran’s Revolutionary Guards Navy announced that transit through the Strait of […]

Middle East — Iran stalemate, OPEC cracks The situation in the Middle East remains unresolved. The naval blockade is still in place, with only a limited number of ships able to pass through the Strait of Hormuz. Headlines during the week suggested that President Trump may be prepared to maintain the blockade in place for […]