- The initial market reaction that “it’s 2008 all over again” does not stand up to scrutiny, in our view. It is far too simplistic to assume that investment strategies that worked post-2008 can be replicated successfully in the coming months and years.
- While the past decade favoured corporations over individual taxpayers, we expect the opposite in this decade.
- Patience will be rewarded, but opportunities to invest both tactically and strategically in consumer and mortgage credit are already visible and we are executing selectively on them.
- In the long run, we see an acceleration of European bank deleveraging, potentially catalysed by greater M&A activity and consolidation – resulting in greater opportunities to position as an asset acquirer of performing bank loan portfolios from capital-strapped banks.
The value of investments will fluctuate, which will cause prices to fall as well as rise and investors may not get back the original amount they invested.