the articles & research center news
Coordinated actions by central banks and governments have a clear objective to prevent a sharp rise in bankruptcies. We are confident in central banks’ ability to address the liquidity crisis as central banks have entered a new regime: unlimited support. However, we have no strong convictions on the depth of the coming solvability crisis.
Deputy Head of Developed Market Strategy Research
The Eurozone’s architecture does not allow it to contain all the risks arising from the current shock. Recourse to an European Stability Mechanism (ESM) credit line without strong conditionality is a de facto first step towards debt mutualisation. Looking ahead, this could pave the way to a European budget and a common debt.
Didier BOROWSKI, Pierre BLANCHET
Pascal BLANQUE, Vincent MORTIER
Where we stand in the crisis and what to watch: Investors have moved from underestimating the severity of the crisis (buoyant markets) to a full global escalation (with the US joining emergency measures) that has led to market disruption and over-reaction.
Pascal BLANQUE, Vincent MORTIER, Monica DEFEND
Christine TODD, Marco PIRONDINI, Paresh UPADHYAYA
Monica DEFEND, Valentine AINOUZ, Didier BOROWSKI