The resurgence of inflation we’ve witnessed in 2022 led to interest rates hikes by central banks around the world. As we’re staring into a recession – albeit a likely shallow one – investors need to find opportunities for the coming years. The banking sector is one of the few sectors that benefit from higher interest rates, and is currently valued at its lowest price-earning multiple ever. Hence, we believe it will likely provide high returns both in credit and equity over the coming years.
Listen to Simon Peters (Investment Strategist, Algebris Investments)
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