April 2023 | Despite the failure of a handful of banks in the US and one in Europe, our view is that 2023 will not present a financial crisis in the magnitude of the Global Financial Crisis (GFC) of 2008. Furthermore, we believe now is an opportunity to take advantage of the volatility in the banking space by increasing allocations to the banks that we believe to be structural winners—those that have invested in technology or have enviable deposit dynamics.
01 | We believe the recent crisis among several US banks was not due to systemic causes, and does not signal a financial crisis of the magnitude of the Global Financial Crisis of 2008.
02 | While the events have caused stresses in the system, the US Federal Reserve not only provided ample liquidity, but has signaled that the stability of the US banking system is a priority.
03 | We believe investors can find opportunities in the banking space by focusing on the banks that have invested in technology or have enviable deposit dynamics because of compelling valuations, while not waiting for consensus earnings to be revised down.
Unless otherwise stated, all information contained in this document is from Amundi Asset Management US (Amundi US) and is as of April 6, 2023. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi US and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results. Amundi Asset Management US is the US business of the Amundi Asset Management group of companies.