Don’t Be Afraid of European High Yield…Be Selective
The European financial crisis continues to challenge high-yield investors. Some were wary of Europe’s issues and stepped away last year, only to see European bonds dominate through the...
View ArticleLittle Cyprus Sparks Big Contagion Fears
The situation in Cyprus is still very fluid and very serious—perhaps more so than in Greece last year. While the country may be too small to have a meaningful direct impact on the rest of the euro...
View ArticleCyprus Averts Disaster, but the Price is High
The European Union’s last-minute deal with Cyprus has headed off bankruptcy for now, but comes at a heavy price for uninsured bank depositors. Meanwhile, the move to impose losses on private creditors...
View ArticleLikely Rate Cut from the European Central Bank Will Be No Magic Wand
Disappointing April data suggest that the ECB is set to cut the refinancing rate at Thursday’s Council meeting. This is likely to have limited economic impact but could encourage expectations of more...
View ArticleEuro High Yield: Defaults Are Not the Biggest Concern
High-yield default rates have been unusually low over the past couple of years and now look as though they are on the cusp of a reversal. But default rates in themselves could be less damaging to...
View ArticleShould Euro-Area Exporters Worry About a Weaker Yen?
Darren Williams (pictured) and Guy Bruten As the yen continues to plummet, exporters around the world are growing concerned that Japanese rivals may gain a competitive advantage. But our analysis...
View ArticleFinding Healthy Stocks in Europe’s Troubled Landscape
European equity markets continue to face severe stress as the continent struggles to contain fallout from the sovereign-debt crisis. Yet this seemingly toxic environment is creating some exceptional...
View ArticleWill Carney Light Fireworks at Bank of England?
On July 1, former Bank of Canada governor Mark Carney will replace Sir Mervyn King as governor of the Bank of England. For many observers, this will herald a new dawn in the conduct of British monetary...
View ArticleECB’s Attitude to Portugal Raises Questions about Bond-Purchase Programme
Political upheaval in Portugal has thrown the spotlight on the European Central Bank’s (ECB’s) bond-purchase programme, known as Outright Monetary Transactions (OMTs). Many are asking whether the ECB...
View ArticleExpect Business as Usual After the German Election
Many pundits believe the German federal election on September 22 will prove a turning point in the sovereign debt-crisis. We are less convinced. Barring a massive shock, Angela Merkel is set to be...
View ArticleEuropean Equities: In the Market with an Airbag
Confidence returned to European markets in 2013 after several turbulent years. As the continent continues to resolve its problems, we believe that European stocks offer compelling long-term return...
View ArticleGlobal Investing and the European Enigma
Equity investors are struggling to figure out how to approach the European enigma. It’s clear that a recovery is brewing, but there’s still too much uncertainty for comfort. In our view, distinguishing...
View ArticleInvesting Across Asset Classes in Europe’s Recovery
Tawhid Ali (pictured) and Jorgen Kjaersgaard Europe’s recovery is becoming reality. In our view, successful investing in the continent today requires a selective approach that exploits dislocations by...
View ArticleNew Dawn for Peripheral Europe?
Darren Williams (pictured) and Dennis Shen When Mario Draghi pledged to do “whatever it takes” to save the euro in July 2012, nobody expected things to change so quickly. Peripheral bond markets have...
View ArticleSovereigns Look Seductive in Europe’s Periphery
Jorgen Kjaersgaard (pictured) and John Taylor Investment-grade bonds issued by nonfinancial firms in Europe’s peripheral countries have had a great run but now look expensive. In our view, government...
View ArticleBold ECB Plan Fails to Quell QE Talk
This week, the European Central Bank (ECB) announced a bigger and broader package of stimulus measures than anyone anticipated. But don’t hold your breath for a material near-term boost to growth or...
View ArticleBank Regulation: A New Opportunity in Credit?
Posted by Jorgen Kjaersgaard (pictured) and Steve Hussey of AllianceBernstein (NYSE: AB) European banks are issuing new subordinated bonds that can be written off in a crisis. For investors who are...
View ArticleDraghi Sharpens “Three Arrows” for Europe
When the European Central Bank’s Governing Council convenes tomorrow in Frankfurt, there will be plenty of talk about Mario Draghi’s recent speech at Jackson Hole. Not only did this open the door to a...
View ArticleEuropean Small-Caps: Focus on Companies, Not Countries
Liliana Castillo Dearth (pictured) and Alan Connery Growth in the euro area has slowed sharply, but that’s not true for all companies in the region. We think worries about Europe’s recovery may offer...
View ArticleEuropean QE Draws Attention to Irish Bonds
John Taylor (pictured) and Dennis Shen Europe’s bond markets are starting to focus on the potential impact of ECB sovereign-bond purchases. While we expect QE to prompt a further narrowing of...
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