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UniCredit: Time To Consider Adding CCTeus To Your Portfolios

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UniCredit note that “CCTeus are a natural hedge against upward pressure in rates. Given the ECB rhetoric, market expectations of depo rate cuts are too optimistic, in our view, and we see a risk of an upward correction. Moreover, going long CCTeus, especially for buy-and-hold investors, is also attractive in light of their liquidity premium. CCTeu Apr26 would deliver the highest extra-return if market expectations came back to where they were at the end of November.”

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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