Sir Michael Hintze, Chief Executive and Senior Investment Officer of CQS, has released his assessment of the risks and opportunities that lay ahead in the second half of 2017.
In the “CQS Insights: Mid-Year Review,” Sir Michael notes that he remains constructive for markets, notwithstanding they are in aggregate at the richer end of the valuation spectrum.
Some of the key highlights in his Mid-Year review are:
- As always, taking a step back, reviewing the overall context and taking a holistic approach to investment is important, especially as changing economic policies, geopolitics and technological change are influencing the investment landscape.
- In an environment of rising US interest rates and a more hawkish stance by the ECB, there continues to be value in credit spreads, especially in floating rate and short duration assets.
- In a world in which implied and realised volatility is low identifying single-name opportunities and an active, multi-strategy investment approach provides greater flexibility.
- Oil prices are likely to remain in a $35 to $55 per barrel. A move below $40 per barrel would potentially generate attractive investment opportunities in the energy complex and beyond.
- Against this backdrop, Sir Michael believes that CQS’ focus on a disciplined, fundamentally-driven investment process that seeks to take advantage of the changing opportunity set while mitigating risks, will deliver value to investors.
Read the full report on the CQS Website.