Bonds

European ‘zombie’ companies have three to six months' runway before defaults rise, says Aviva Investors

European ‘zombie’ companies have three to six months' runway before defaults rise, says Aviva Investors

Concern is growing over a likely spike in defaults among so-called ‘zombie’ companies that have stayed afloat during the coronavirus pandemic by relying on government stimulus and increasing their debt loads, but will struggle to keep servicing loans as government schemes roll back.

Tax

Financial services sector fears impact of Financial Transaction Tax on trading, liquidity, and active management

Financial services sector fears impact of Financial Transaction Tax on trading, liquidity, and active management

The possible introduction of a financial transaction tax (FTT) in the US and Europe to make up for lower tax revenues resulting from the Covid-19 pandemic, is raising concern from investors and advisers, shows new data from Greenwich Associates.