Banks are leading a double life in financial markets, as investors scoff at their equity but can’t get enough of their debt. This should spell caution for those who have piled into the gray area in-between: Bank debt that turns into equity. After this week’s selloff, bank stocks in Europe are trading close to their lowest levels on record relative to the wider Stoxx Europe 600 index. Having failed to keep pace with the broader market rally this year, they are now down 30% over the past half-decade.

Source: Wall Street Journal May 09, 2019 14:20 UTC