Updated views on QBE given recent events

Hi Darren & John,

We updated our views on QBE in Friday’s AM report here – the main point being the tailwind of higher rates has turned as we have been consistently highlighting. Bond yields have fallen quickly, and we see no reason to stand in front of that momentum just yet. We will be interested in QBE if/when we feel bond yields have fallen far enough and expectations of rate cuts become excessive.

Regarding broker target prices, brokers don’t tend to pay a lot of attention to the Macro environment, they are more bottom up than top down. While broker prices are worth monitoring, analysts are very reactive by and large, and we actually use ‘consensus’ in a different way that you’d think. When analysts are all very universally positive on something, we believe it creates a risk around crowded positioning – QBE has been an obvious example of this. As one of the guys on the desk often says, Analyst’s make sheep look like independent thinkers!

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QBE Insurance Group Ltd (QBE)

LAST UPDATED 15/12/2023 21:35

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QBE Insurance Group Ltd (QBE)

LAST UPDATED 15/12/2023 21:35