QBE fell over 3% on Wednesday as the beneficiaries of higher bond yields caught the seller’s attention, especially with some healthy profits on the table after a solid year. The insurance group recently released a 3Q performance update, highlighting the tailwinds the insurance sector has enjoyed since COVID-19; however, it could be as good as it gets for a while, especially as global bonds rally with some gusto (yields lower). Hence, while we like the current evolution at QBE from a risk/reward perspective, we prefer to observe at this stage.
- We can see QBE testing below $14 over the coming months, which is a more optimum entry level for MM.
MM is neutral towards QBE in the short-term
Add To Hit List
