Investment bonds issued by large European and US banks have caught the eye of one expert.
According to Ariel Bezalel, manager of the Jupiter Strategic Bond Fund, turmoil in the banking sector is actually good news for those with investments in such products.
He said: "Banks will need to continue raising capital through further rights issues and bond issuance.
"In the future I expect to see less leverage, tighter regulation and more transparency in this sector."
There is also the prospect of mergers between banks, which will lead to strong balance sheets, further boosting investment bonds, he added.
Pricing for such bonds currently takes into account a high-level of default risk, despite the fact that financial firms are now starting to perform better, meaning investment bargains could be on offer, Mr Bezalel stated.
Yesterday, Angus Rigby, chief executive officer of TD Waterhouse, claimed that commodities firms are currently proving popular investments.
Bank bonds are good investments, expert claims
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Bank bonds are good investments, expert claims
Tue, 03 Jun 2008
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