BK presented at the Goldman Sachs Financials Conference as the CEO & CFO spoke to the need for more organic unit growth and digitalization to drive future profitability and fend off old and new competitors. We are Neutral on the Stock and find benchmark Bonds fairly priced. Regulatory/Counterparty risks low. BK BK BK BK BK BK BK BK BK
Systemic risk looks rather tame in the US, but the same can not be said for Europe and Asia. Still N. American banks should experience credit volatility in 2019 as debt binging meets higher rates and rockier economic backdrops.
Big week for sovereign chatter as the G20 Summit gets rockin on the 30th. Sino, Saudi issues top of mind on trade, oil, and assassinations. Macron's anti-nationalism challenged by rambunctious Yellow Vests. Russia amps up its naval intimidation of Ukraine interests.