Newly elected vice chairman of the Bank of Cyprus and chairman and CEO of WL Ross & Co, Wilbur Ross has cited difficulty in finding “extreme value in the mainstream markets” as a reason behind his decision to invest in the Bank of Cyprus.
“We`re finding it very difficult to find extreme value in the mainstream markets,” Ross told CNBC on Friday, adding “we`ve moved into Greece, into Euro Bank, and now into Bank of Cyprus. That`s going pretty far out on the periphery”.
The Bank of Cyprus Annual General Meeting elected last Thursday a new Board of Directors, following a recent €1.0 billion capital raise, the biggest foreign direct investment in the island`s history.
The bank has been recapitalised with depositor money, as part of a €10 billion bailout Cyprus received from the EU/IMF, under which 47.5% of uninsured deposits over €100,000 have been converted to shares.
According to CNBC, despite the seemingly unstoppable US stock market, in the same interview Ross advised individuals to be cautious.
“Think about it, we`ve had all-time highs repeatedly during this year,” Ross said. “The obvious corollary of that is there are fewer and fewer really inexpensive things.”
He also said that China`s rate cut was a “positive development”, describing the move as a possible early signal of quantitative easing. “I think they need that”.