Asset encumbrance ratios are becoming a fashionable metric when it comes to assessing the health of banks.
On that note, Société Générale’s cross-asset research group provides a nice little break-down on Monday. While SocGen don’t believe that asset encumbrance is a major problem for any bank yet, they do recognise that the issue is becoming important on account of banks’ recourse to secured funding, and one likely to be picked up on by ratings agencies soon. Read more

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