European credit markets overlooked opportunity
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Krystine Lumanta is a journalist with InvestorDaily, a Sterling publication.
Australian investors should look beyond the current "macro fear" and focus on the broader opportunities in European markets.
Opportunities to take advantage of the dislocations occurring in the European credit markets are being missed by investors, according to Wiltshire Capital chief executive and principal investment manager John Sullivan.
"There are businesses in Europe that have specific attributes that cannot be found elsewhere in the world where the debt is being offered at prices that make compelling economic sense," he said.
"The key is to look for event-driven situations and to invest in leading businesses with sustainable competitive advantage."
Investors should focus on the great opportunities in Germany, the United Kingdom, France and the Scandinavian countries, Sullivan said, adding that Wiltshire was cognisant of the differences between the core and poorer-returning nations in Europe.
"For example, clearly Greece has received a lot of airplay and has significant issues, which will last for some time and it's probably having too much influence on people's perception on what is happening in Europe," he said.
"However, within some of those countries that Wiltshire focuses on, there remain world-leading businesses that still generate significant cash flows and have demonstrable competitive advantages."