In episode 8 of Delta, Andrew ‘Jacko’ Jackson, Head of Fixed Income at Hermes, speaks with six analysts in the liquid-credit team about the fundamental and technical drivers for the sectors they cover. Insights include:
- “Auto manufacturers need to change their platforms, their technologies – the way they make a car” as they adapt to the electric-vehicle megatrend, says Ilana Elbim, Senior Credit Analyst. “And this is weighing on their balance sheets.”
- In the energy sector, “companies that can survive the lower-for-longer pricing environment in the natural-gas market – those with lower costs, secure debt capacity, and which have assets to sell to pay down debts,” will be more attractive to credit investors, says Audra Stundziaite, Deputy Head of Credit Research.
- Filippo Alloatti, Senior Credit Analyst, says: “I do not possess a crystal ball to tell you what will happen in 2020, but I do expect some consolidation among banks in Europe – at least at the local level, because growth has been so anaemic."
Credit markets have rallied strongly at the outset of 2020 – find out what might lie ahead.
Tune in to Delta.
Podcast: Play in new window | Download
See our podcast guide on how to download our podcasts on your phone.