Negative Rates Across The Developed World Unprecedented

Though periods with nominal rates below zero are rare and the current environment with negative rates across the developed world is unprecedented, analysts at Credit Suisse remain selective and favor banking names that can sustain a prolonged period of low interest rates. Jan Wolter and team point out in their March 4 research note that ECB action driving spreads tighter could be a positive for banks in the short term.

European banks are net losers from negative rates

In their latest research note on European banks, Wolter and colleagues take a close look at how negative rates impact banks. The analysts argue that banks were net beneficiaries as lower rates helped repair balance sheets in 2009.