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Language Notification

Please be advised that future verbal and written communications from the bank may be in English only. These communications may include, but are not limited to, account agreements, statements and disclosures, changes in terms or fees; or any servicing of your account.

Por favor, tenga en cuenta que es posible que las comunicaciones futuras del banco, ya sean verbales o escritas, sean únicamente en inglés. Estas comunicaciones podrían incluir, entre otras, contratos de cuentas, estados de cuenta y divulgaciones, así como cambios en términos o cargos o cualquier tipo de servicio para su cuenta.

Informamos que as futuras comunicações do banco, verbais e escritas, podem estar disponíveis apenas em inglês. Essas comunicações podem incluir, entre outras, acordos de conta, extratos de conta e divulgações, alterações aos termos ou tarifas, ou qualquer tipo de serviço pertinente à sua conta.

仅此通知,本行即日起发出的口头及书面通信可能将只提供英文版本。这些通信可能包括但不限于账户协议,账单和通知,条款或费用变更;或任何为您账户提供的服务。

Please be advised that future verbal and written communications from the bank may be in English only. These communications may include, but are not limited to, account agreements, statements and disclosures, changes in terms or fees; or any servicing of your account.

Por favor, tenga en cuenta que es posible que las comunicaciones futuras del banco, ya sean verbales o escritas, sean únicamente en inglés. Estas comunicaciones podrían incluir, entre otras, contratos de cuentas, estados de cuenta y divulgaciones, así como cambios en términos o cargos o cualquier tipo de servicio para su cuenta.

Informamos que as futuras comunicações do banco, verbais e escritas, podem estar disponíveis apenas em inglês. Essas comunicações podem incluir, entre outras, acordos de conta, extratos de conta e divulgações, alterações aos termos ou tarifas, ou qualquer tipo de serviço pertinente à sua conta.

仅此通知,本行即日起发出的口头及书面通信可能将只提供英文版本。这些通信可能包括但不限于账户协议,账单和通知,条款或费用变更;或任何为您账户提供的服务。

make-yourself-at-home-european-fi-strategy

Perspectives

Make yourself at home: European Fixed Income Strategy

Kris Xippolitos

By Kris Xippolitos

Head - Fixed Income Strategy

April 3, 2020Posted InFixed Income and Investment Strategy

Just like the rest of the world, the COVID-19 impact on economies, markets, and investor sentiment has punched European fixed income markets hard. While a 1.0% year-to-date loss on the Bloomberg Barclays Euro Aggregate Index seems great relative to other regions, it still includes a 7% drop in early March. Unfortunately, with the exception of sovereign bonds (most of them anyway), all European assets are now firmly in negative territory for the year.

Central banks and governments have announced numerous monetary and fiscal programs. The European Central Bank (ECB) bond purchases are likely to offset a meaningful increase in government bond supply. Though Italy’s fundamental programs are of concern, ECB intervention is likely to keep Eurozone (EZ) rates low and spreads tight.

As the dust settles from the recent fire sale in global bond markets, dislocations have become noticeable in corporate credit. However, we recognize risks have risen for others. Investment grade (IG) corporate spreads have not bounced back like other assets, which reflects investor angst over BBB-rated debt and potential downgrades. We favor an up in quality bias, taking advantage of wider spreads in higher rated corporate bonds. Additional Tier 1 securities offer long-term value.

Read Fixed Income Strategy.