Credit risk in the European banking system has surged to all time high as the market priced in more than 90% chance that Greek debts will default. Investors’ fears intensified despite government’s denial of imminent default and commitment to austerity measures. The situation has sent other peripheral yield spreads much higher. As far as core economies are concerned, French banks are at risk of being downgraded by Moody’s.
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Financial Markets Tumble on Risks of European Credit Crunch
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