In the latest edition of CQS Insights, Sir Michael Hintze presents his views on global markets and assesses the risks and investment opportunities he sees ahead in 2019.
In his analysis of global markets, Sir Michael notes that while global economic expansion is moderating, growth will continue. He further noted that CQS is constructive for markets, especially for credit on a relative value basis.
He highlighted the impact of the end of quantitative easing, noting that that corporate credit and equities are in a period of adjustment to a post-QE world and are re-pricing.
He argued that it is a credit pickers market, and that credit spreads have widened, creating more attractive valuations, dispersion and idiosyncratic investment opportunity.
Finally, he highlighted several macro-themes and risks on his radar for 2019, including populism, the European political landscape, global trade, inflation and market structure.
Read more: “CQS Insights: Looking into 2019”