Banks a problem for equity not bond investors - Invesco

Causer – Invesco’s fixed income co-head – believes while bank share prices have taken a tumble recently, financial credit offers “compelling value” in current conditions. Invesco Perpetual has reshaped its Monthly Income Plus fund to cash in on these opportunities, moving away from its relatively defensive stance. The fund’s exposure in bank credit stands at 21.2%, from just 7.5% in May last year. Causer says March's Bear Stearns rescue was a turning point, with credit markets recording the strongest monthly return for over five years in April. “The worst of the deleveraging appears to b...