Credit in Europe – is it finally set to turn?
LONDON | The Corner | The winners in the “race for recovery” are those who get credit flowing again. In their Wednesday comment, UBS Global Macro Team points out that “the key to recovery coming out of a credit crunch is to get credit flowing again: the US and, to a lesser degree, the UK managed this in the early years following the financial crisis, but the Eurozone is still grappling with the issue. We think this one factor is the best explanation for the outperformance of US equities over Europe post-crisis. The S&P 500 is up 190% from the March 2009 lows, whilst Europe is up 120%.”