Algebris CEO Serra Says Bond Market Has Bubbles That Can Burst

The video discusses investment strategies in light of a potential global manufacturing recession. It highlights the creation of a 'barbell' strategy, investing in financials while buying protection against high-risk bonds. The speaker critiques market mispricing of risky bonds due to a lack of safe investment options. The discussion shifts to the economic slowdown's impact on the financial system, particularly European banks, suggesting domestic consolidation post-Brexit due to oversupply and the need for capacity reduction.

What investment strategy is suggested in response to the current economic conditions?

How does the speaker view the pricing of risky bonds in the current market?

What are the implications of a potential recession in manufacturing on certain bonds?

What changes in the European banking sector does the speaker anticipate post-Brexit?

What concerns does the speaker express regarding smaller banks in the UK?