Tikehau Capital sees attractive risk-adjusted returns in European subordinated financial debt
TLT•Tikehau Capital identifies European subordinated financial debt as one of the bond market’s most attractive risk-return opportunities, citing well-capitalized institutions, stronger regulation and attractive yields.
1. Investment case
Tikehau Capital said European financial subordinated debt offers attractive risk-adjusted returns. It cited well-capitalized financial institutions, stronger regulation and attractive yields as reasons for a larger allocation in diversified bond portfolios, while saying issuer strength, bond characteristics and valuation remain critical to selection.
