This year we have a variety of elections in Europe that could derail markets, along with uncertainty around US President Donald Trump's policies and the UK's Brexit negotiations.
In addition, we have the risk of further ECB tapering. All this uncertainty, coupled with the low yields on offer within fixed income, cause us concern. However, there are pockets of value to be found. One of our top picks is the banking sector, especially within the subordinated space where the bulk of yield is found. Additional Tier 1's (AT1s or 'CoCo bonds' as they are commonly known) are an area that has dominated headlines due to the borrower being able to fully write down the securities (and write back up) or convert them into equity, in the event of the bank's capital declinin...
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