Romain Miginiac will discuss his latest insight for Credit Opps - "Lower rates for longer".
•Global interest rates have declined significantly since the start of the year
•Expectations of lower rates for longer have led to downgrades in bank consensus earnings and bank equity prices
•For bondholders, however, the impact of a mild erosion of banks’ return on equity is largely irrelevant – the overall fundamentals of the sector continue to improve
•Our bullish view on financials’ subordinated credit is further backed up by attractive valuations