Europe's Bank Stress Tests are Missing One Crucial Element
Stress tests for European banks may be overlooking the damage caused to lenders by negative yields.
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Even before the results of European bank stress tests are announced tonight, Jim Reid thinks regulators might have missed something.
The Deutsche Bank AG credit strategist says negative bond yields — a scourge for lenders and investors alike — appear to have been overlooked. That could be quite an omission since sub-zero yields are a product of the negative interest rates that have been proving so troublesome for Europe's banks.