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Recently, the insurance group has enjoyed yet another mini relative performance burst of strength, supported by the modest uptick in bond yields. However, we doubt that a sustainable outperformance phase can ensue. Pricing power…
Stocks are flirting with new highs, courtesy of a gradualist Fed and the reduced threat of incremental near-term U.S. dollar strength.
Following a temporary reprieve, banks are about to run into a brick wall. The latest Bank For International Settlements (BIS) Quarterly Review[1] made for grim reading on the global loan growth front: the global credit impulse continues…
An attractive cyclical pair trade opportunity is developing between the S&P telecom services and S&P financial sectors. Both are depressed from an historical standpoint, but will perform differently in the face of relentless…
Consumer products stocks are likely to move to an even larger valuation premium before the cyclical outperformance phase ends.
Special Report The secular bond bull market is over. Safety is in a bubble. The shift from monetary to fiscal easing is the most likely candidate to prick the bubble in safety. In this piece we revise our yield portfolio to increase its resilience…
Special Report It is becoming increasingly likely that the U.K. will, after all, exit the EU. Feature The initial post-Brexit economic data have surprised to the upside as a result of the Bank of England's quick reflexes, the fall of the pound, and…
A common perception is that the euro has been a failure for Italy. We challenge this perception and explain why it is so important for investors, whether it is wrong or right.
The latest FDIC Quarterly Banking Profile showed that bank earnings' improvement remains lackluster. What caught our attention from the release was the persistent widening in the C&I non-current loan rate, coupled with rising C…
Yesterday we showed an Insight with financial sector relative performance and the yield curve, with the message that the sector's more defensive components outperform while the curve is flattening, as is currently the case. We view…