European Bank's CDS [Credit Default Swap ] - Economic Indicators to Watch

 In Europe, the characteristics were not significant and were not of interest in stocks or economies compared to political risks.

 If Germany also posted negative GDP growth in the third quarter, it would be categorized as a recession.

 ( Technical Reception: means a negative GDP growth rate for two consecutive quarters. )

 Europe receives corporate financing from banks ( Indirect Financing ), and in the U.S. the share of listed stocks is high ( Direct Financing ).

 In the U.S., banks are important.
 The movement of stock prices is more important. This is because the movement of stock prices is related to the financing of companies.
 In Europe, on the other hand, the risk of banks is considered important.

 Ten-year government bond rates in Germany and France, Europe's largest countries, are in negative territory for about two months.

 From the bank's point of view, it makes a profit on the deposit margin. The return of the reserve margin to negative means it has become a loss-making structure.

 ex) Deutsche Bank's massive layoffs and stock prices are worse than they were during the financial crisis.

 Banks are also in an unusual situation and are currently in turmoil.
 CDS: It means trading other goods in a hedge for fear of bankruptcy.​
 A rise in CDS means a higher risk of bankruptcy. ​

 Currently, European banks have lost a lot of stock, but the CDS has not risen much, so it is still in good shape.
 The bank's CDS needs to be watched as a preemptive reflection of the risks.​