Smaller companies have been the traditional target but that could be set to change

Smaller companies have been the traditional target but that could be set to change
Information was exchanged in a chatroom called Sterling Lads
Sector’s post financial crisis bounce back has been largely overlooked
EU has been forgiving of banks that once contained cartels
Valuations reached all-time lows in 2020 on a price/book value basis
‘Our European clients want to see European banks with them’
While balance sheets mostly remain strong, profitability was already weak going into the current crisis
Unlike 2008, they are a key part of the solution to this crisis rather than the cause of the problem
As banking sector is largely exposed to leveraged loans and marginally to high yield bonds
The European Court of Auditors suggests tests were too easy on some banks with others left out altogether
Part of the Bonhill Group.