Buxton to back Lloyds as 'healing' underway for banks

The Schroder UK Alpha Plus fund manager says Lloyds' £13.5bn fully underwritten rights issue, together with the conversion of £7.5bn of debt securities to a new form of coupon-paying convertible bonds, leaves the banking giant on a "positive track" going forward. "The capital raising has passed stress tests for a further significant deterioration in the UK economy and further major falls in house prices in 2010," Buxton says. "Clearly any judgment about the future path of bank profitability is subject to many uncertainties at present and we are cognisant that many caveats regarding th...