The new crown pneumonia epidemic has spread to the world, and the uncertainty of the epidemic has caused great shocks in the financial market. In addition, the Organization of Petroleum Exporting Countries gave up its production reduction plan in order to consolidate its market share, resulting in a sharp drop in international oil prices and further deepening market panic.
In search of a safe haven for capital, investors flocked team mainly reduces the size of industries that are most vulnerable to the impact of the new Special Database coronavirus epidemic, such as gaming, aviation, catering, non-core consumption, and energy. In fact, AllianceBernstein has significantly reduced the size of the energy industry since the beginning of 2019. At this stage, it still maintains a cautious and conservative view on the energy industry. This is because the energy industry requires huge additional capital to expand production capacity, and only in this way can debt be reduced .
However, as the profitability outlook of the energy industry has not improved significantly, we believe that the energy industry's ability to raise funds will continue to face challenges, which will also continue to put pressure on credit spreads. In addition, investment teams continue to favor the banking sector, especially the subordinated bonds of European financial institutions denominated in euros and dollars. The dovish signal from the European Central Bank has negatively impacted European bank stocks and raised