04 August 2014 by HCM
BES (Banco Espirito Santo) resolution is behind us. Equity and subordinated debt bond holders are sharing the loss. Depositors and senior debt bond holders are protected. Today, the European financial sector outperformed the market. The market opened very firm but progressively widened as a dead cat bounce. The 70 mark is important on the iTraxx Europe index. It was a key resistance on the tightening during the spring. On the way out, a lot of trading should happen around this level.