Algebris CEO on Banks' Exposure in Russia

The video discusses the impact of the Ukraine invasion on European bank stocks, which have dropped by 25%. It explores the types of exposure banks have, including direct and cross-border, and the potential economic repercussions, such as a recession. The video also examines investment opportunities and risks, highlighting that the market has priced in worst-case scenarios. Finally, it addresses the legal and moral considerations of investing in Russian assets, emphasizing the importance of adhering to regulations.

What percentage decline have European bank stocks experienced since the Ukraine invasion?

• 75%

• 10%

• 25%

• 50%

What is one of the main concerns for investors regarding European banks' exposure to Russia?

• High interest rates

• Exposure to certain bonds

• Lack of liquidity

• Currency fluctuations

Which type of exposure involves lending money from outside Russia to Russian corporates?

• Domestic exposure

• Cross-border exposure

• Direct exposure

• Indirect exposure

What is a potential macroeconomic effect of the crisis discussed in the video?

• Increase in global trade

• Rise in oil prices

• Massive recession in Europe

• Strengthening of the Euro

Which banks are mentioned as having purchased Russian corporate debt recently?

• BNP Paribas and Credit Suisse

• Barclays and Citibank

• Goldman Sachs and JP Morgan

• Deutsche Bank and HSBC

What is the primary concern for markets when investing in Russian assets according to the video?

• Public opinion

• Market share

• Legality

• Profitability

Who is responsible for setting the moral guidelines that markets should follow?

• Economists

• Bankers

• Politicians

• Investors