Ralph Gasser is a Product Specialist, where he covers the segment of fixed-income and hybrid asset classes. Prior to joining GAM investments in August 2002, he spent some 15 years with UBS, where his positions included Head of European Asset-Backed Securities Research in London, senior analyst and transactions manager for structured finance in New York and Zurich, and more than six years as a relationship manager for commercial clients. All in all he has some 30 years of professional experience in the field of traditional and structured interest-rate and credit products. He completed the higher specialist training in Switzerland as a federally certified banking specialist. He is based in Zurich.
Topic: European Subordinated Debt – A Compelling Income Opportunity
European subordinated debt continues to be well positioned to deliver high single-digit total returns driven by comparatively high income and modest capital gains, even in this more advanced stage of the global risk cycle. Macroeconomic and issuer-specific credit dynamics are sound and should show further improvements going forward. Current valuations remain attractive relative to corporate credit risk and US preferred securities while market technicals continue to be favourable. Combined with interest rate correlation dynamics, this makes European subordinated debt one of the most compelling traditional fixed income value propositions currently available – both on a standalone basis and within a wider portfolio construction context – and even more so if the asset class is approached in an unconstrained and well-diversified fashion.