U.S. Defence Companies: ignore at your own peril…

In recent months, equity investors have increasingly turned their attention to European defence companies, driven by shifting international relations and reduced U.S. support for conflicts like Ukraine, prompting Europe to bolster its own capabilities.However, overlooking U.S. defence companies would be a misstep, as firms like Lockheed Martin, RTX, and Northrop Grumman remain global leaders, underpinned by a massive U.S. budget, unmatched technological innovation, and critical partnerships around the world…

Where is the value in bank debt’s structure ?

Further h opes of de-escalating trade war between US and China, as well as the US-UK tariff deal on Autos and metals last week pushed credit spreads tighter again. AT1s were one again the outperformers (-18bp), followed by €HY (12-bp) which outperformed their $ counterparts by 3bp despite suffering from net outflows (-€45mn from EPFR) while US HY funds benefited from another week of net inflows ($1.6bn from Lipper). There is still some catch-up to do for €HY vs the iTraxx X-Over (30bp lag) and US$ HY (13bp lag) Bank Subs have more difficulty to perform (4.5bp “only”) given their rel...

Financial markets on tenterhooks ahead of trade talks