In this Dispatch, our grizzled veteran observers and experienced investors in global financial equities and bonds have leveraged BGA’s collective subject matter expertise to deliver our insights on the four themes we think should be of interest for investors in the financial sector.
Hunting for a housing bubble in Sweden
Sparked by Recent data showing a small drop in housing prices in Sweden is renewing fears of a “bubble” about to burst. Our essay “Hunting for a housing bubble in Sweden” examines the “unhappy” equilibrium the country appears to be in and the potential implication for the banking sector.
“Basel 3 & Beyond”
The Basel Committee is meeting this week to put the finishing touches on the post-crisis regulatory response. Given the huge delays and the reversing tide of regulation, the final agreement is about saving face more than anything else in our view. While we believe that bankers will be relieved about the good news, we argue that they have every reason to worry about what comes next.
“HSH Nordbank – A Space Oddity”
We revisit the Landesbanks, Germany’s vestigial organ of the financial sector in the form of HSH Nordbank’s impending privatization. Media reports are suggesting HSH Nordbank will fetch as little as €200 million – a low-cost option to get upside exposure on Europe’s sleeping giant of a banking sector.
“The new financial landscape in Brazil”
The new financial landscape in Brazil”, we discuss the dramatic transformation in the Brazilian financial sector. Although the country’s seen a dramatic improvement in economic management since President Temer assumed office, growth is still slow and the fiscal challenges remain daunting.
Prior to Paulson, he covered US Mortgage & Specialty Finance as a widely-respected sell-side equity research analyst at Banc of America Securities. He was the first sell-side analyst to downgrade companies to sell ratings on the basis of an impending mortgage credit crisis.
Previous to that, Robert was Head of Financial Strategy at Capital One, leading the team charged with ascertaining acquisition opportunities to aid the firm’s transformation to diversified consumer bank. He covered U.S. mid-cap banks at Lehman Brothers where he had also been the Head of Latin American Equity Research.
Prior to Lehman Brothers, Robert headed the Latin American Financial Institutions Equity Research Group at Bear Stearns as well as at Santander Securities. Before his time on the sell side, Robert worked at the Bank of Nova Scotia involved with the bank acquisitions in Latin America.