Algebris Investments: Buy Santander Debt To Profit From Banco Popular Deal

Of all the places to invest in the world, the European banking sector does not come high on the list. Over the past decade, Europe's financial industry has lurched from one crisis to another, and while there has been some meaningful process on restructuring, risks remain.

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Indeed, even though the overall stock of bad loans for 15 Italian banks fell in 2016 for the first time in the past eight years, there are still more than €250 billion of bad loans on banks' balance sheet in Italy alone.

However, according to Davide Serra, founder and chief executive of the $12 billion hedge-fund manager Algebris Investments, there is one European bank that has a better outlook than its...