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Market Analysis

  • A quick review of the European airline industry

    A quick review of the European airline industry

    The European airline sector was one of our top picks towards the end of 2014 when declining oil prices and a depreciating Euro provided significant tailwinds. A glimpse of a European recovery and quantitative easing in the first months of 2015...

  • The impact of bond supply net of QE on interest rates

    The impact of bond supply net of QE on interest rates

    The first week of May was pretty much characterised by the sharp sell-off in bonds, particularly bunds and high-rated (Investment Grade) bonds, and despite showing some signs of slowing down over recent trading sessions, the trend has...

  • It’s not game over for US equities!

     The total return year-to-date (YTD) of the S&P500 was 2.78 percent as at close of trading last Friday. At a first glance, it’s not a performance to boast about especially when the European markets such as the DAX is up 19.42 percent for the same...

  • What went wrong with the government bond yields?

    What went wrong with the government bond yields?

    Over the past two weeks the European sovereign yields have been rapidly increasing (prices have been falling) and with them they brought down the prices of most of the Investment Grade corporate bonds. The fall in German Bonds (aka Bunds) seems to...

  • Disney continues to create dreams

    Disney continues to create dreams

    Disney shares have increased 16.6 per cent year to date. The increase in the share price partly reflects Disney’s consistent ability to create memorable fictional characters. Frozen, released in 2013, is still capturing children’s imagination, as...

  • Shipping movements

    The following ships are expected in Malta: The CMA CGM Jade from Damietta to Genoa, the Taurus J from Annaba to Bejaia, the ER Canada from Jeddah to Valencia (all Carmelo Caruana Co. Ltd), the Thies Maersk from El Khoms to Misurata, the BC Hamburg...

  • Differences between a bond and a bond fund

    There are many misconceptions around the difference between a bond and a bond fund. This article will serve to outline the key differences between both instruments, and what to look out for when investing in each security. By definition, a bond is...

  • Credit markets grind tighter during April

    Credit markets were poised for a strong performance in April were it not for the disappointment in the retreat in yields in the last few trading sessions of the month. Meanwhile, the Emerging Markets high yield universe in dollars extended gains...

  • The best of the DAX is yet to come!

    The German DAX is a total return index of 30 selected German blue chip stocks traded on the Frankfurt Stock Exchange. Year-to-date the index is up 18%. An excellent return for the first four months of the year and this is after a 10% pullback from...

  • Apple’s value is still attractive

    Apple’s value is still attractive

    Apple increased its quarterly profits by 35 percent over the same period last year driven by booming demand for the iPhone 6 and increasing sales of Apple products in China. Apple sold 61.2 million iPhones during the quarter exceeding most...

  • L’Oreal SA - "Because I'm worth it"… for shareholders

    L’Oreal SA - "Because I'm worth it"… for shareholders

    L'Oreal SA manufactures, markets, and distributes health and beauty aids.  The Company produces colorants, styling, hair care, cosmetics, skin care products, perfumes and dermatological and pharmaceutical products. The shares of L’Oreal have...

  • Understanding correlations within a risk management framework

    Understanding correlations within a risk management framework

    Understanding and managing portfolio and investment risks within an investor’s basket of investments is paramount in ensuring returns commensurate with the risks being undertaken. One of the crucial factors within portfolio risk management is...

  • European Equities - ‘Please, sir, I want some more!’

    The Euro Stoxx 50 is up 18% year-to-date. For many that may be an excellent return for a whole year let alone for just the first four months. But what’s even more interesting is that there are investors who have achieved a return better than that...

  • Investors are looking for yield

    Although I might sound a bit technical for the first few sentences of this article, rest assured you do not have to be a professional reader to understand where I am going. Simply speaking, in the high yield fixed income market exposure to an...

  • Quantifying currency gains

    It is not news that the Euro has depreciated considerably against major currencies in the past year. For most Maltese, these currency movements have resulted in a significant impact on the way we consume and the way we invest. During the past year...

  • What rating to choose for your High Yield portfolio?

    Sub-investment grade bonds can be broadly divided in BB-rated, B-rated and CCC & lower rated with the risk profile increasing in this respective order. The yields are naturally higher for the lower rated names but the movements are generally not...

  • Planning for retirement: a long term process

    Fixed Income and Equity assets have had a remarkable run over recent months, with bond yields (sovereign and corporate, investment grade and high yield) at record lows and (most) Equity Indices trading at record highs (or perhaps slightly off...

  • Investing in high dividend paying US stocks

    To attain a decent yield on a bond with an attractive risk/reward ratio is becoming a difficult task for investors. Yields on German Bunds continued to decline over the years to all-time lows due to loose monetary policy aimed at kick starting a...

  • European banks see money-printing leading to credit growth

    European banks see money-printing leading to credit growth

    Earlier this week the European Central Bank (ECB) released the results of its quarterly Bank Lending Survey (BLS). Although this publication was hardly mentioned by media and market commentaries it is an important leading indicator in my opinion...

  • The factors that will keep oil prices low at least until June

    The factors that will keep oil prices low at least until June

    Following the decline in the price of oil, investors may be tempted to bet on a rebound in price. In this article I will argue that both from a supply side and from the demand side conditions are not yet in place for a significant reversal of...

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