Greek crisis leads managers to argue the case for more country-specific research

Investors must increase their focus on top-down macroeconomic research as sovereign risk intensifies, Credit Suisse has warned.

The group says the impact of the Greek financial crisis on other countries’ banks proves the need for country-specific and not just sector-specific research. The survey highlights the underperformance of French banks over the past month, driven by their £50bn exposure to Greek debt. Against an average relative move of 1%, French banks fell 6.5% while Portuguese banks fell 9%. Slightly less dramatic falls were seen in the Italian banking sector, at 5.4%, and Spain, at 2.2%, according to data from the Bank for International Settlements (BIS). Oliver Russ, the manager of the Ignis Argona...