Neil Unmack is a Reuters Breakingviews Associate Editor based in London. He covers credit markets, hedge funds, and Italy. Previously he was a corporate finance reporter at Bloomberg News in London. He started his career as a financial journalist in 2001 at Euromoney Institutional Investor, where he covered structured finance for EuroWeek magazine. He was educated at Eton College and Oxford University, graduating with a first class degree in modern languages.
Investors in $11 bln of funds managed by the Swiss group, suspended last year, will get their money back. The recovery supports the idea that blocking withdrawals is a good way to sell illiquid assets, at least in benign markets. The damage to GAM’s business will last longer.
The banks regulator is aiding the German lender’s revamp by letting it run on a lower capital ratio. In response, Deutsche Bank’s hybrid bond yields spiked. A botched overhaul would be bad for creditors – and also the central bank’s credibility.
Prime Minister Theresa May will probably be replaced by a eurosceptic like the former foreign secretary. He and other contenders threaten to drag Britain out of the EU without a deal. Yet while Brexit has hit UK share prices, investors are showing little sign of rising alarm.