Insights

Each month we share the conclusions from the monthly strategy investment committee which provides a summary of Ostrum AM's views on the economy, strategy and markets.

European banks have reported robust 2025 earnings. European bank bonds have been strongly supported by these solid fundamentals and favorable technical factors, leading to a significant compression of spreads, especially on subordinated debt.We believe the current fundamental momentum will carry through into 2026. We anticipate net interest income growth potential from the second half of the year, once the central bank rate cuts implemented in 2025 have been largely absorbed by banks.Consequently, we retain a positive outlook for the banking sector. We believe banks are favorably positioned within an economic landscape marked by, on one hand, a relatively stable macroeconomic baseline scenario, and on the other, an environment replete with numerous underlying risks.Furthermore, despite stretched valuations and a riskier context, the decline in issuance and the sector's resilience should limit downside risk and support carry. Opportunities remain through mergers and acquisitions, regulation (AT1), and lower capital structure investments.

Each month we share the conclusions from the monthly strategy investment committee which provides a summary of Ostrum AM's views on the economy, strategy and markets.

2025 was an excellent year for equity markets across all geographic regions. Total return performances (with net dividends reinvested) of the world’s major markets (United States, EMU, Europe, Japan, China) rose by an average of 20% throughout the year. Such performance had not been seen for some time, particularly in the euro area.2026 should remain supportive for equity markets, albeit with some persistent risk factors. Diversification and selectivity will remain key investment principles in 2026.

Quarterly publication / January 2026

Each month we share the conclusions from the monthly strategy investment committee which provides a summary of Ostrum AM's views on the economy, strategy and markets.

Each month we share the conclusions from the monthly strategy investment committee which provides a summary of Ostrum AM's views on the economy, strategy and markets.

Each month we share the conclusions from the monthly strategy investment committee which provides a summary of Ostrum AM's views on the economy, strategy and markets.

Each month we share the conclusions from the monthly strategy investment committee which provides a summary of Ostrum AM's views on the economy, strategy and markets.

Quarterly publication / October 2025

Each month we share the conclusions from the monthly strategy investment committee which provides a summary of Ostrum AM's views on the economy, strategy and markets.