All Eyes On EU Stress Test Results
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All eyes are on Europe ahead of bank stress test results due out shortly.
Documents today showed that the test on the 91 European banks will factor bank losses on government bonds they trade, rather than those they hold to maturity. In addition the stress test will be based on a double-dip recession, 20 percent stock market plunge, and rampant unemployment.
The stress test also assumes a 4-notch ratings downgrades on bank securitized holdings.
EU regulators said the stress test has a once in 20 years probability, tougher than the U.S. tests from 2009.
The test assume a loss of 23.1 percent on Greek debt, 14 percent of Portuguese bonds, 12.3 percent on Spanish debt, and 4.7 percent on German state debt, according to reports from Bloomberg.
Related ETFs:
CurrencyShares Euro Trust (NYSE: FXE)
PowerShares DB US Dollar Index Bullish (NYSE: UUP)
PowerShares DB US Dollar Index Bearish (NYSE: UDN)
Documents today showed that the test on the 91 European banks will factor bank losses on government bonds they trade, rather than those they hold to maturity. In addition the stress test will be based on a double-dip recession, 20 percent stock market plunge, and rampant unemployment.
The stress test also assumes a 4-notch ratings downgrades on bank securitized holdings.
EU regulators said the stress test has a once in 20 years probability, tougher than the U.S. tests from 2009.
The test assume a loss of 23.1 percent on Greek debt, 14 percent of Portuguese bonds, 12.3 percent on Spanish debt, and 4.7 percent on German state debt, according to reports from Bloomberg.
Related ETFs:
CurrencyShares Euro Trust (NYSE: FXE)
PowerShares DB US Dollar Index Bullish (NYSE: UUP)
PowerShares DB US Dollar Index Bearish (NYSE: UDN)
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