RAIFF - Could The Ukraine Conflict Overwhelm Europe's Banks?

• Russia-Ukraine war will have far-reaching consequences for world economies, with Europe’s banks inevitably impacted. But we believe a sell-off in European banks’ bonds could create some opportunities.
• Risks are concentrated in a few countries: Italy has about 21% of all outstanding loans to Russia, accounting for 2.5% of all Italian banks’ FCs, and Austria has roughly 14% of outstanding loans representing 3.7% of all Austrian banks’ FCs.
• Crisis disruptions will likely drive banks’ bond spreads wider, but strong credit fundamentals keep us positive.

For further details see: