Goldman Sachs Chief Global Equity Strategist Peter Oppenheimer spoke with CNBC on Monday, US time.
Some of the points he made on the banking sector:
- valuations of the banking sector are "healthy"
- the current crisis does not indicate a "systemic" issue
- "What the market is worried about is that bondholders, which previously were seen to be very safe, may not be as safe as they thought," he said. "Obviously, what investors are thinking about is who will take any of the losses as these further supports come through."
- Given the current state of the economy, the underlying fundamentals of the banking industry and the overall level of private sector leverage in corporate and household balance sheets are much better than they were prior to the financial crisis of 2008.
More broadly on the equities market:
- “Even if markets rebound from current levels in the short term, high uncertainty and lowered confidence levels are likely to mean an ongoing ‘fat & flat’ market given that valuations do not look particularly attractive”
