Algebris' Gallo Says Credit Good for Those Without Fear of Commitment

The video discusses the current economic environment characterized by a cyclical rebound within a period of slower growth, with some economies experiencing 'Japanification'. Central banks globally, including the Fed and ECB, have adopted dovish stances, maintaining low interest rates. Credit is highlighted as a favorable asset due to low default rates and positive growth indicators. The US high yield market has recovered, while Europe presents more opportunities due to investor fears. Higher risk premiums are noted in assets held for longer periods, suggesting potential for high yields and capital appreciation in Europe and emerging markets.

What factors are causing investors to shy away from European bonds?

What potential yields can credit provide in Europe and emerging markets?