European Banks: Be Mindful of Risks in 2017

Posted by Julian Wellesley, Senior Global Equity Opportunities Analyst on Jan 18, 2017 3:05:20 PM

European banks seem to be on an upward trajectory – although improvements are likely to come at a slow pace and with some risks. For the time being, European bank CEOs will continue to look enviously at their counterparts across the Atlantic as US bankers enjoy an optimistic outlook on the possibilities of a stronger domestic economy, higher interest rates and some loosening of US financial regulation. Combined, these factors should increase bank profitability and dividends to shareholders.

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Topics: Equity Research

2017 Market Outlook: 15 Experts On What To Watch

Posted by Orla O'Brien, Media Specialist on Jan 3, 2017 8:30:00 AM

 Every six months, we share insights from Loomis Sayles portfolio managers and analysts; what are the current themes and risks shaping their investment decisions? Looking into 2017, geopolitical shifts, rising rates, regulatory changes and new proposed policies from President-elect Trump will all be key factors. 

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Topics: Quantitative Research and Risk Analysis, Credit Research, Macro Strategies, Sovereign Research, Equity Research, Bank Loans, Emerging Markets, Fixed Income

Finally, Fed Hikes Rates: Our Reaction to the Second Increase Since 2006

Posted by Orla O'Brien, Media Specialist on Dec 14, 2016 5:23:14 PM

What a difference an election makes

"It wasn’t much of a surprise that the Federal Reserve announced a 25 basis point rate increase today - its first hike in 12 months and the second hike since 2006. It seems that solid employment reports, gradual increases in inflation and the prospect of fiscal stimulus have made Federal Reserve Open Market Committee (FOMC) members more hawkish. Chair Janet Yellen’s assessment of the economy was mildly more upbeat and it appears that the FOMC now foresees a slightly faster pace of tightening than they’ve previously indicated. This flip in attitude breaks the trend of recent years, in which the FOMC backed away from tightening meeting after meeting.  What a difference an election makes."

- Brian Horrigan, Chief Economist

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Topics: Macro Strategies, Fixed Income

A Trump White House: Potential Impact on US Banks

Posted by Elizabeth Schroeder, Senior Credit Research Analyst on Dec 12, 2016 9:00:00 AM

Donald Trump’s presidential victory may have a mildly positive impact on US banks. A change in several economic factors could signal a more positive environment for banks, including:

  • Net interest income should experience a boost, as higher interest rates should push net interest margins higher.
  • Commercial and industrial loan growth rates are likely to increase with funding for President-elect Trump’s infrastructure projects.
  • Commercial bank customers are also expected to increase borrowing as they should benefit from lower taxes and reduced regulations.
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Topics: Credit Research

Loomis Sayles analysts are career professionals who offer deep knowledge and experience in a diversity of global asset classes and market sectors. These dedicated experts provide the insight essential to supporting our portfolio management teams across a wide range of investment strategies.


 

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