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Podcast: All into Account
Episode: Equity Strategy - Reiterate the UW on Banks
Description: Speaker: Mislav Matejka, CFA, Head of Global Equity Strategy
One of the sector calls where we face the most pushback from investors is our UW on Banks, entered in Q4. Until Q4, Banks had outperformed for three years in a row, driven by better EPS momentum and ultimately by rising bond yields. We have downgraded the sector as we think this phase is over. US 10-year moved from 0.5% in 2020 to 5% last October, the point at which we argued that bond yields have likely peaked. This is even as we tactically think that short-term bond yields are likely...