European banks are under immense pressure, but at least one prominent hedge fund has found what it thinks is a good opportunity in the wreckage.
Marc Lasry, co-founder and chief executive of hedge fund Avenue Capital, told CNBC that European banks continue to be a big opportunity for distressed investors – particularly the loans these banks are sitting on.
"Most banks are being forced by the European Central Bank to sell loans and therefore we're able to buy those loans at a great discount. The ECB will likely continue to put pressure on these banks to clean up their balance sheet," he said in an interview.
In terms of where in Europe Avenue Capital is looking, Lasry says go north.
"We're currently looking at Northern Europe because their legal system is the best," he said.
Banking analysts say it is easier to buy bad loans in northern Europe, because if you default you are penalized more promptly than in some southern European jurisdictions.