Year-to-Date the SX7R index of large European banking stocks, which includes names such as HSBC or BNP, is down nearly -25%, -38% since the last peak in July. The credit market is in the same mood: initially limited to peripheral banks – mostly those with large NPL ratios, for example in Italy (6.75% UCGIM AT1, -21% YTD) – the fall was generalized to the strongest issuers (BNP AT1 7 3/8 -10% YTD) and Tier 2 securities or Legacy securities, including those issued by insurers. US banks have suffered far less: -18% YTD vs. -25% for Europe…