The 2014 All-Europe Fixed-Income Research Team: Investment-Grade Strategy, No. 1: James Reid & team


< The 2014 All-Europe Fixed-Income Research Team

James Reid
& team
Deutsche Bank

First-Place Appearances: 4

Total Appearances: 4

Team Debut: 2011

Deutsche Bank captures the crown in this sector for a fourth consecutive year, matching its current winning streak in General Strategy. The London-based trio captained by James Reid also notches its second straight first-place finish in High-Yield Strategy. “Jim and his team have a truly global perspective on macro, micro, sentiment and technical factors when formulating their strategic views,” declares one advocate. “That really differentiates them from their peers.” In general, the group believes that continued accommodation from monetary authorities will lead to greater liquidity in the markets. Although the European Central Bank is more conservative than its institutional peers, it may be forced to intervene more aggressively as Europe moves closer to zero inflation. “The world is still dictated by U.S. monetary policy,” asserts Reid, 39, so the main story this year will be “the speed and effectiveness of implementing the U.S. Federal Reserve’s monetary policy.” Among investment-grade credits, whose performance remains dependent on macro conditions, “we look to the higher-beta parts of the universe,” he reports, “as we think the search for yield will continue.” His strategists favor bank capital credits, “specifically, older-style instruments from the strongest institutions,” the team leader advises. This segment will be buoyed by ongoing robust demand and constrained net issuance, thanks to “redemptions from the large volume of five-year issuance in 2009, in the aftermath of the crisis,” Reid concludes.