NEW YORK--(BUSINESS WIRE)--The latest edition of Fitch Ratings' 'Inside Credit' newsletter highlights the impact of regulation on Global Trading and Universal Banks' (GTUBS) business models.
Increased regulatory requirements for capital, liquidity and resolvable group structures are forcing the 12 global trading and universal banks to adapt their strategies to ensure that they can generate adequate risk-adjusted returns. This is driving a strategic business model rethink at some banks, notably some of the European groups.
"The banks whose management can dedicate most time to the business will have the greatest advantage, compared with those that have to devote material management resources to adapting strategies," says Christian Scarafia, Senior Director. "In general, better growth prospects in the U.S. have positioned those banks better than their European peers."
Other topics covered in this week's edition of Inside Credit include:
--U.S. High Yield ETF Trading Volume, Flows Could Create Disconnects
--European Leveraged Loans Resilient Despite Increased Volatility
--Paths Diverge for "Second Tier" Money Fund Domiciles
--ABI Could Face Multi-Notch Downgrade from SABMiller Deal
--Pakistan Assigned First Time 'B' Rating
--European CLO 2.0: Selected Transaction Features Explained
--No Sovereign Credit Impact from Australia PM Change
--Recoveries from Properties in Possession Lag Spanish Housing Rebound
--China Automotive Sector Blue Book
--Highlights from the Global Sovereign Conference
'Inside Credit' is a weekly snapshot of Fitch Ratings' noteworthy content, selected from all sectors and regions. To receive the weekly edition, distributed every Friday at 8am ET, please sign up here: http://pages.fitchemail.fitchratings.com/InsideCreditSignUp/
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