Old Mutual: bank bonds now "exceptional" value

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Bank bonds now offer exceptional value, according to Stephen Snowden, manager of the Old Mutual Corporate Bond fund.

Snowden argues that while banking share prices have been hit hard in recent times, new external and internal regulation, introduced since the start of the credit crunch last year, means that not only are bonds cheap, but they make up one of the least risky asset classes in which to invest. According to Snowden, spreads have now elevated to a point not seen in any historical comparison, bar 1929, and that any further write-downs have now been more than priced in. "There is now no question about whether or not we are in a bear market, the environment is definitely grisly," explained Sno...

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