Top managers spy high yield opportunities as European Central Bank's liquidity injections transform banks' refinancing operations.
Top bond managers are snapping up bank debt in the view the European Central Bank’s liquidity injections have transformed banks’ refinancing operations into a high-yielding buying opportunity. Invesco Perpetual co-head of fixed income Paul Read said bank debt has had a “massive recovery” since the lows of last October. He highlighted the arrival of new ECB president Mario Draghi, the introduction of the long-term refinancing operation (LTRO) and fresh rounds of capital raising as key factors behind the rally. With €230bn in bank loans requiring refinancing in the first three months...
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