Europe's banks unlikely to get hit by bond portfolio losses - Moody's

Kitco Media
By Reuters
Published:
Updated:
Reuters
MILAN, March 13 (Reuters) - European banks are unlikely to find themselves compelled to liquidate their bond holdings at a loss like their U.S. peer Silicon Valley Bank, Moody's Investors Service said on Monday. The credit rating agency said that declines in the value of bond portfolios driven by higher market rates were "temporary and moderate" for most large European banks. "Smaller, deposit-funded banks can rely on the stability of their loyal depositor bases, which ensures they can wait for a recovery in bond values without incurring materially higher funding costs," it added in a comment. (Reporting by Valentina Za, editing by Alvise Armellini)

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