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‘Opportunities in European banks favour debt over equity’

In this video, Lloyd Harris, portfolio manager, Merian Global Investors argues a decade after the financial crisis, there are far more opportunities credit investors than equity investors in European banks.

“The European banking system in unrecognisable since the financial crisis. Capital levels are broadly five times as much as they were before the financial crisis,” he says,

“The regulator is strong now and that has made for strong bank balance sheets. There are lower returns on equity because we have five times amount of equity in system.”

As a result, he says, there are for more opportunities credit investors than equity investors in banks.

Harris was speaking on the sidelines of Expert Investor’s Pan-European Congress in Barcelona last month.

 

David Robinson

David Robinson is the editor of Expert Investor. He has 18 years’ experience as a business journalist and editor. In the past he has written for the Guardian newspaper and The Telegraph, and worked as...

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