June 2021

Post n°221
Published on 06/25/2021

By Hadrien Camatte, Théophile Legrand and Quoc-Trieu Le

Assessing investor risk appetite is essential for financial stability and market analysis. This post looks at a risk appetite indicator developed by Banque de France staff and gives insights into its contribution to understanding market impact since the start of the COVID-19 pandemic.

Chart 1: Risk appetite indicator since early 2020
Chart 1: Risk appetite indicator since early 2020 Sources: Bloomberg, authors’ calculations.
Post n°220
Published on 06/18/2021

By Thomas Ferrière and Dorian Henricot

The price dynamics of corporate and residential real estate are highly correlated in France, both historically and geographically. The health crisis is firstly an asymmetrical shock affecting primarily the demand for corporate real estate. Nevertheless, we show that a fall in prices in this sector could affect residential property prices, particularly in areas where supply is most constrained.

Chart 1: annual growth of office and residential real estate prices as a national average, and distribution by département.
Chart 1: annual growth of office and residential real estate prices as a national average, and distribution by département.
Post n°219
Published on 06/15/2021

By Vanessa Doucinet, David Ly and Ghjuvanni Torre

Between the end of December 2019 and the end of March 2021, companies' gross debt increased by EUR 224 billion, while their cash position rose by EUR 215 billion. Based on a first analysis of the 205,392 balance sheets received by the Banque de France, it is possible to break down these overall reassuring figures in more detail: 6 to 7% of the total number of rated companies could face difficulties when the support measures are lifted.

Chart 1: Changes in companies’ gross financial debt and cash position Source: Banque de France - Companies Directorate. Key: “sensitive” quadrant, red disk: 11.4% of companies that have not taken out a State-guaranteed loan (SGL) whose gross debt has increased by 22% and cash position has decreased by 33%.
Post n°218
Published on 06/02/2021

By Julia Schmidt and Olivier Sirello

Since the onset of the pandemic in 2020, euro area residents have sharply adjusted their international portfolio investments. Significant sales of foreign assets in March 2020 were followed by large purchases of foreign securities. At the same time, non-residents have purchased euro area debt securities, especially short-term debt.

Chart 1: The euro area has purchased US securities on a massive scale since the second quarter of 2020
Chart 1: The euro area has purchased US securities on a massive scale since the second quarter of 2020 Source: European Central Bank.