The world’s biggest asset manager likes the look of Greek banks
Europe is complicated and is rarely free of problems, as investors in Spanish assets can currently attest. But as the latest political crisis roils Madrid, BlackRock has issued upbeat analysis on a series of the continent’s nations — including the one that has grappled with some of its biggest problems: Greece. The asset manager describes the country as “resurgent”, and argues that its successful return to financial markets after a review of its third bailout “will unlock significant investment demand”. Chris Colunga, co-manager of BlackRock’s Emerging Europe PLC, also points out that Greek debt could “eventually” qualify for inclusion in the European Central Bank’s bond-buying stimulus policy, “providing the government with a lower cost of debt and reassuring investors”. Along with a pick-up in economic growth, it means Greek banks could move away from doubts about their solvency, says Mr Colunga. He identifies “room for substantial improvement” for Athens-listed financial stocks, which are looking cheap compared with their peers.
source: https://www.ft.com/content/cce203c8-a8ed-11e7-ab55-27219df83c97
