Corporate spreads have reached multi-year lows in many parts of the world. In European investment grade, spreads are below 90 basis points, a level not seen since 2021, and European high yield spreads of 270 bp have not been seen, since 2017. The situation is not very different in the US, with investment grade at around 80 bp and high yield at 280 bp. This raises the question: is there still value for investors buying into credit now?

Electricity is gaining strategic importance in the global energy system. This is not because electricity is a primary energy source, but because the mix of energy sources used to produce it is changing. In particular, the share of oil in electricity generation is falling, replaced by a growing mix of renewables, gas, and nuclear power. This shift not only changes how electricity is produced, but also reshapes the inflationary dynamics historically linked to oil, and consequently its potential impact on interest rates.

Last year, we highlighted the conundrum of European value stocks, particularly banks, Trading near their lowest valuations, yet showing their strongest fundamentals in over two decades. Despite continued outperformance, there remains potential for a valuation catch-up as investors reassess banks' strategic role in the energy transition.