Banks

Partner and portfolio manager Gary Kirk discusses why he thinks AT1s continue to look attractive in the search for yield. 

Yesterday the ECB released their guidance to banks regarding shareholder distributions. They have reiterated that banks should exercise extreme moderation on variable remuneration (bonus payments) and have set limits for dividend payments to equity holders and prudence on any share buy-back schemes.

2020 has not been an ideal year for those investors with a nervous disposition, as we have endured an unprecedented level of uncertainty soothed by an equally unprecedented level of monetary and fiscal stimulus

Barclays announced its results for the third quarter of 2020 this morning, with a number of media outlets opting to focus on a 6% year-on-year reduction in top-line income.

Unlike the past six months, where nearly all new deals performed well in the secondary market, from here on in that is far from guaranteed. Expect winners and losers.

George Curtis discusses Q3 performance for credit markets and provides his outlook for the rest of the year.

The press can have their sensational headlines, but these stories have little substance when it comes to the impact on the reputation risk of banks or indeed any significant impact on their balance sheets come May 2021.

Overall, in our view there may be some temporary volatility ahead which investors can try to sidestep or even take advantage of, but it’s probably not worth trying to be too cute as our medium term outlook is still constructive.

Gary Kirk, Partner and Portfolio Manager discusses Bank Capital, in particular, AT1s, and why this is a sector we like.

TwentyFour CEO Mark Holman provides a macro outlook before discussing his views on a critical US presidential election and how it could impact the economy and the markets.

Gary Kirk and Eoin Walsh hosted a breakout session on the MSB stage where they provided an update on portfolio performance and their outlook for fixed income markets.

There are a number of countries in Europe where the banking sector remains very fragmented, and while a lot of work has been done in Spain with the mergers of multiple ‘cajas’ in the last few years, there is still scope for further consolidation.