ECP | Luxemburg, 16.10.2020
It is not a surprise that interest rates are at rock bottom levels. An already anaemic economic activity has been slowed down further by the pandemic pushing central banks to inject unseen amounts of liquidity into our financial systems. For the moment at least these monetary policies are not leading to inflation and hence to higher rates. This environment is not favourable for value investors as the traditional industries they are investing in are facing headwinds. Financials are hurt by shrinking net interest margins and risk higher loan losses in a post Covid-19 world.
Mit freundlichen Grüssen aus Luxembourg
Léon Kirch, CIO & Partner
