Investors should be wary of two-speed economy, says BNP Paribas's Robert McAdie
Inflation could make developed market corporates vulnerable in the coming months, especially those with purely domestic revenues.
Developed market corporates offer limited value in the current inflationary environment, according to Robert McAdie, global head of credit research and strategy at BNP Paribas in London.
In Europe, investors need to choose companies with strong international profiles over those whose revenues come mainly from their domestic market, as Europe is currently a two-speed economy with most of the continent lagging but Germany booming thanks to exports to Asia.
“Corporate balance sheets are relatively
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