Sir Michael Hintze discusses the outlook for European markets in 2019

In an interview with the Financial Times, CQS founder and Senior Investment Officer, Sir Michael Hintze shared his views on the impact that the end of quantitative easing (QE) will have on European markets in the coming year.

Sir Michael noted that the full effect of QE tapering has not yet been priced into assets: “Taper is in the market, but the [QE] flows are too big to say [taper] is in the price.” Sir Michael, whose firm runs $18bn in assets, added that the ending of QE will put pressure on European investment grade bonds, which should provide attractive investment opportunities in time…Mr Hintze said he expects valuation dispersion in credit as QE ends. “That will provide opportunity for active managers,” he said.

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