Money for Nothing

Couldn’t resist.  Is there a better way to start the weekend than MTV with Dire Straits?

The European Central Bank cut its deposit rate below zero yesterday making it the first major central bank to use a negative rate.

ECB Money for Nothing

Government bond yields are at record lows, yet unconventional monetary policy is not feeding into bank lending (this should sound familiar). Irish bond yields are trading below US treasury yields for the first time since 2007.

Irish Yields

While small business continues to struggle across the Eurozone, the macro backdrop is ripe for certain well-positioned and opportunistic investors. We recently detailed our investment thesis on shares of Kennedy Wilson, which is available here. Yesterday, while Mario Draghi was pointing his monetary bazooka at the banks, KW announced the acquisition of two additional properties in Dublin for EUR 44.6 million, while the FTSE approved the inclusion of KWE in the FTSE 250 Index. Not a bad day’s work.