Crisis

Ariel Bezalel, Head of Strategy, and Harry Richards, Fund Manager, explain where they have been snapping up credit opportunities, while remaining alert to the risks often concealed in bear market rallies.

The operating environment for European banks will be challenging, but resolution and senior debt bail-in are extremely unlikely. Banks will have to be a key piece of the puzzle as authorities seek to minimise long-term economic loss.

The UK takes a big step towards Brexit, with today’s key announcement. Parliamentary ratification is the next major hurdle to clear. With the DUP reportedly uncomfortable with the deal, the parliamentary arithmetic for Saturday’s vote is very hard to call.

Italy’s announcement of a tentative budget deficit goal of 2.4% of GDP over 2019-2021 could compound the country’s existing debt sustainability challenges. This represents a significant risk to Italy’s A-/Negative Outlook ratings.

Greek Prime Minister Alexis Tsipras won a resounding mandate to reject the package of austerity measures on the table in Greece’s referendum yesterday. This is but the latest twist in a road that increasingly seems to be leading towards Greece’s departure from the eurozone.