Invesco's Read: Why bank bonds look more attractive than shares

Paul Read, fund manager at Invesco Perpetual, has urged investors keen to buy into financials to focus on the debt offered by banks and their peers, rather than snap up shares in the companies.

Read, who along with colleagues Paul Causer and Nick Mustoe is running the group's new Global Financial Capital fund, explains below the rationale for investing in bonds over equities in the financials space in the current enviornment. "It is clear now that early December marked a huge turning point in sentiment for credit markets generally and the financial capital sector in particular. Before then, these markets were beset by fear of systemic risks in the eurozone. But afterwards, market participants began to believe that the European authorities ‘got’ the seriousness of the problem...