This time banks are part of the solution
26-05-2020 | Productwebinar
Banks entered the Covid-19 crisis in a much stronger state than many corporates. Basel III implemented a number of years ago, and as a result, bank balance sheets were strengthened to conform to the strict guidelines. Conversely, corporate debt levels had been increasing over the years and recently ballooned due to the recent loss of trade, creating many new ‘fallen angels’.
Jan Willem de Moor, Portfolio Manager of the Robeco Financial Institutions Bonds Fund, and Client Portfolio Manager David Hawa outline how this renaissance for banks is reflected in the fund. They discuss the ECB’s PEPP program, give their current views on AT1 CoCo bonds, provide an update on the insurance sector, and discuss valuation levels following April’s rebound.