Volatility Could Build Trading Profits for Banks, Says Armstrong

The video discusses the positive outlook for the banking sector, highlighting Credit Suisse's revenue updates and the potential for trading to become a profit center due to market volatility. It compares the banking sector's value to US equities and anticipates benefits from yield curve steepening. The discussion then shifts to market volatility, particularly in VIX and equities, and its potential impact on the credit market. Despite recent volatility, fundamentals remain stable, and no forecast revisions are needed. Valuations are less attractive, prompting a recommendation to reduce credit exposure.

What concerns are raised about the credit market in relation to volatility?

What stance does the speaker take regarding the need to revise forecasts?