This is an upward correction in bond yields from an early overshooting of bond prices (early undershooting of the exchange rate), which marked the first significant adjustment in European sovereign bond markets since mid-2013 (triggered in turn by the Federal Reserve’s tapering of its asset purchases).
Banks need to work harder to bring a wider range of options for dealing with affordability to bear on this problem particularly to take account of individual cases where there is little prospect of servicing the original loan terms. On the one hand, the banks must husband their available capital in a prudent manner.