The Attraction of Italian Banks

Published on
May 31st, 2017
Duration
3 minutes

The Attraction of Italian Banks

Trade Ideas ·
Featuring Scott Davies

Published on: May 31st, 2017 • Duration: 3 minutes

Scott Davies of CDAM makes the case for Italian banks, which have been hit by negative sentiment, but offer some of the most attractive long run returns in the European equity markets. Filmed on May 23, 2017, in London.

Comments

  • LJ
    Lewis J.
    15 September 2017 @ 19:04
    Hard case to make.
  • KB
    Krystof B.
    30 July 2017 @ 12:38
    16% + non-performing loans + two Italian banks filled for bankruptcy and the largest Italia bank got bail-out few weeks ago. I don't see any opportunity on the long site in Italia at all, whole country will go bankrupt sooner rather than later.
    • LL
      Lucie L.
      17 December 2017 @ 16:59
      Unfortunately yes. The never-ending political campaign give us no space for long term focused and stable economic growth
  • AE
    Aleksey E.
    9 June 2017 @ 08:15
    Sounds like one for a long term options play
  • SS
    Steve S.
    2 June 2017 @ 09:55
    If you are going to invest in European Banks, stick with the German, French or UK ones. Investing in Italian banks just isn't worth the risk.
  • RT
    Rune T.
    2 June 2017 @ 06:26
    Sounds like long ISNPY short ASX:WBC could be a trade for me.
  • FM
    Fraser M.
    1 June 2017 @ 05:54
    I like these trade ideas but the presentations are too thin on rationale. More substance please.
  • AS
    Artur S.
    31 May 2017 @ 17:42
    I agree with Intesa, good management there. The rest is mostly just a bunch of crap. The issue with NPLs in Europe is that it's always all accounted ... until the day we realize it really isn't and they are going to need another capital increase. Also, hard to argue they have taken the right steps since they have little steps they can take by themselves. Regulators do as they please and more and more banks in Europe look like they want to be utility companies. They forget their job is to manage risk. The other day, BNP's CEO talked on BBG and he seemed so enthusiastic about more regulation that it really scared me.
  • MS
    Matt S.
    31 May 2017 @ 16:38
    That's it? Everyone is short Italian banks... so we are contrarians and say go long. : \
    • KV
      Koen V.
      1 June 2017 @ 05:23
      1. Go long pick up some pennies from under a steamroller. 2. When we get into the next economic recession+financial crisis pray for a bail-out instead of a bail-in. 3. Claim you are some kind of genius when you manage to survive without too severe losses, or go bankrupt and start a new hedgefund when you lose all your customers' money