10.19.2026
Divided We Rise?
Since 1980, the S&P 500 Index has generally performed well in the weeks surrounding U.S. midterm elections. Specifically, the index…
This week’s chart(s) of the week show the exposure that German, French, and UK Banks have to the debt of Portugal, Ireland, Greece, and Spain (PIGS). The top chart shows the Total Exposure that the German, French, and UK Banks have to debt of the PIGS countries. This includes Government debt, Private debt (both household and Corporate), and the value of any derivative contracts held by the banks of the respective countries. The middle chart shows the exposure that the German, French, and UK Banks have to the Government Debt of the PIGS countries. The bottom chart shows the exposure that the German, French, and UK Banks have to the Government & Bank Debt of the PIGS countries.
These charts help to explain why Germany, France, and the UK (the 3 biggest Euro area economies) were so eager to help bail out the governments of Greece and Ireland (thus far). Had the EU not stepped in to help Greece and Ireland, they likely would have defaulted on their debt, which would likely have required the German, French, and UK governments to bailout their banks (the “stress tests” that the European banks recently went through did not include the possibility of a sovereign default).
The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.
10.19.2026
Since 1980, the S&P 500 Index has generally performed well in the weeks surrounding U.S. midterm elections. Specifically, the index…
10.12.2026
This week’s chart highlights the accelerating growth of electricity demand in the U.S., which has been driven primarily by the…
10.05.2026
For investors, the spookiest thing about October might not be the ghosts and monsters that are bound to show up…
09.28.2026
The phrase “expectations of higher inflation” has become a staple in financial news to explain the increase in nominal U.S….
09.21.2026
For much of the past several years, the conventional view has been that higher interest rates and stretched valuations would…
09.14.2026
There are many great things about working at Marquette Associates, but “Free Lunch Tuesday” is right at the top of…
Research alerts keep you updated on our latest research publications. Simply enter your contact information, choose the research alerts you would like to receive and click Subscribe. Alerts will be sent as research is published.
We respect your privacy. We will never share or sell your information.
If you have questions or need further information, please contact us directly and we will respond to your inquiry within 24 hours.
Contact Us >