The banking-sector jitters that are rocking the likes of New York Community Bancorp will not be confined to the US, with the potential for defaults spreading to Europe, according to a top-performing fund manager.
“There are portions of the market that we think are in very deep trouble,” said Jonathan Golan, a portfolio manager at Man Group Plc in London, whose investment-grade bond fund beat 99% of peers last year in data compiled by Bloomberg. “You’ve got more banks that are coming under scrutiny, more banks falling casualty, and potentially some banks defaulting on both sides of the Atlantic.”