Invesco's Causer keen on bank bonds

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Market developments have presented opportunities in fixed income investing, particularly bank bonds, according to Invesco Perpetual's Paul Causer.

Causer sees the rescue of Bear Stearns in mid-March as having marked the nadir of the first phase of the credit crunch. He said: "Credit markets have since rallied sharply. April saw the strongest return in credit markets for over 5 years and high yield spreads are now on average 170 basis points tighter from the wides. Investment grade primary markets have re-opened. At $303bn, global bond issuance by banks reached its third highest monthly level ever in April. By May, non-bank investment grade bond issuance in Europe also hit a record high for the year to date." Causer added that, mo...

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