Partner Insight: Will bank 'national champions' prove the strongest in a protracted recovery?

BlueBay’s Marc Stacey and James Macdonald explain their focus on a particular part of the bank capital structure in a particular type of bank

What is the key goal of the BlueBay Financial Capital Bond Fund? Marc: To take advantage of opportunities in the financial sector - banks or insurers - across the capital structure and across the globe. But it's fair to say that the overwhelming sweet spot we see right now is in select European bank Additional Tier 1 (AT1) instruments. That's because of fundamental improvements we've seen in the banking sector over the last decade, because valuations are attractive and because we think there is potential mispricing - you've got a lack of natural investors in this particular tranche withi...