Draghi Sharpens “Three Arrows” for Europe

When the European Central Bank’s Governing Council convenes tomorrow in Frankfurt, there will be plenty of talk about Mario Draghi’s recent speech at Jackson Hole. Not only did this open the door to a large-scale quantitative easing (QE) programme, it may in time be seen as a pivotal moment in the evolution of the euro area’s policy framework as it attempts [...]

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Bank Regulation: A New Opportunity in Credit?

Posted by Jorgen Kjaersgaard (pictured) and Steve Hussey of AllianceBernstein (NYSE: AB) European banks are issuing new subordinated bonds that can be written off in a crisis. For investors who are willing to take the risk, our analysis suggests these bonds may provide a way to beat the low returns in today’s corporate bond market.

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Bold ECB Plan Fails to Quell QE Talk

This week, the European Central Bank (ECB) announced a bigger and broader package of stimulus measures than anyone anticipated. But don’t hold your breath for a material near-term boost to growth or inflation in the region.

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Sovereigns Look Seductive in Europe’s Periphery

Jorgen Kjaersgaard (pictured) and John Taylor Investment-grade bonds issued by nonfinancial firms in Europe’s peripheral countries have had a great run but now look expensive. In our view, government bonds from the likes of Spain and Italy offer better value for investors who want peripheral exposure.

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New Dawn for Peripheral Europe?

Darren Williams (pictured) and Dennis Shen When Mario Draghi pledged to do “whatever it takes” to save the euro in July 2012, nobody expected things to change so quickly. Peripheral bond markets have since turned around sharply, supporting the European economic recovery. But can the improvements be sustained after countries exit their bailouts?

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Investing Across Asset Classes in Europe’s Recovery

Tawhid Ali (pictured) and Jorgen Kjaersgaard Europe’s recovery is becoming reality. In our view, successful investing in the continent today requires a selective approach that exploits dislocations by focusing on return-seeking assets across stock and bond markets.

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Global Investing and the European Enigma

Equity investors are struggling to figure out how to approach the European enigma. It’s clear that a recovery is brewing, but there’s still too much uncertainty for comfort. In our view, distinguishing the European context from that of the US or Japan can help point the way toward unravelling the puzzle.

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European Equities: In the Market with an Airbag

Confidence returned to European markets in 2013 after several turbulent years. As the continent continues to resolve its problems, we believe that European stocks offer compelling long-term return potential. But since short-term uncertainties remain, investors should consider balancing a strategic position with tactical short-term defense mechanisms.

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Expect Business as Usual After the German Election

Many pundits believe the German federal election on September 22 will prove a turning point in the sovereign debt-crisis. We are less convinced.

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ECB’s Attitude to Portugal Raises Questions about Bond-Purchase Programme

Political upheaval in Portugal has thrown the spotlight on the European Central Bank’s (ECB’s) bond-purchase programme, known as Outright Monetary Transactions (OMTs). Many are asking whether the ECB is ready to support the market if yields rise further. And if not, why not?

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