CQS Founder and CEO Sir Michael Hintze was recently interviewed by The Daily Mail about his predictions for global markets in 2015 and how his firm not only weathered but found opportunities in the financial crisis.
Asked by journalist Alex Brummer about the key to CQS’s success, Hintze had a simple answer: hard work.
‘You look at it statistically, you look at things closely, you do the work.
‘You take the noise and put it in data information knowledge and you get insight from that knowledge... That is the CQS approach.’
Hintze went on to discuss the two big global issues that he believes will impact markets in 2015: the oil price, and the future of Greece and the Eurozone.
Hintze noted the potential for falling oil prices to create 'massive (budget) shortfalls' in oil producing countries, which will be a 'big problem for them on a social basis' and drive greater geo-political instability.
On the issue of the Eurozone, Hintze warned of a potential ‘domino effect’ caused by Greece:
'It will give impetus for change in Spain. You will end up with the chaps in Italy throwing in the towel.'
The real peril, in his view, is that if this happens it will leak into the ECB that operates a transfer mechanism for deficits. This could be a massive danger. 'Germany has got about €700 billion (£545 billion) of exposure, most of which has gone to the rest of the eurozone. I promise you it will be a bloody nightmare,' he says.