Banking sector squeeze provokes flight to safety

Falls in the value of shares in the UK banking sector are provoking a flight to safety by fund managers but are also creating attractive opportunities. James Alexander, pan-European research analyst at M&G, says in the current climate, the largest banks offer the best protection against market volatility. Across M&G equity funds, he notes, the group has an overweight position in UK banks, with the largest names in the sector making up a large part of that weighting. Companies in which M&G is currently overweight include the Royal Bank of Scotland, Barclays and HSBC. These comp...