Goldman Restores View on Europe Bank Debt on Credit Suisse News

Goldman Sachs Group Inc. strategists upgraded European bank debt back to overweight, reversing an earlier decision even as a rout in lenders’ riskiest bonds continued in the wake of Credit Suisse Group AG’s bailout.

A so-called neutral weighting on the sector is no longer warranted as UBS Group AG.‘s takeover would provide clarity on Credit Suisse’s future path, Goldman strategists including Lotfi Karoui wrote in a note Sunday. But they warned that sentiment toward Additional Tier 1 bonds, the riskiest form of bank debt, may remain weak after a Swiss regulator said $17 billion of such notes from Credit ...