KPMG: SFIG Vegas – the full round-up
CLO equity investors at SFIG Vegas were in an upbeat mood in a panel discussion, but with rate rises and political risks looming they said this was no time to get comfortable
Greg Branch, CIO at SCIO Capital, pointed out that interest rate shocks have historically been a problem for low-rated companies in the US, but in European credit markets, a bigger concern was political risk.
‘Europe is more constructive in terms of baseline forward default rates compared to the US, but you have a tail risk in Europe that you don’t have in the US. A populist government coming to power in France or Italy would be a much larger shock’.