Cost cutting has nursed global financial sector back to health

The global financial sector looks in good shape on the back of consumer borrowing, diversification and restructuring measures to cut costs. Overall the MSCI World Financials index rose 28.32% last year compared to 8.95% for the previous, while both Psolve Alternative Investments and New Star look to global mortgage markets. Although Jabir Sardharwalla, chief investment officer at Psolve Alternative Investments, does not comment on individual portfolios, he feels rising interest rates will benefit the lending and banking sector in Japan, as the Bank of Japan is expected to lift its zero i...