Why this global opps manager thinks US banks merit a closer look

Banks merit closer look

A number of factors have undermined sentiment towards the banking sector over the past seven years but Andrew Hall, manager of the Invesco Perpetual Global Opportunities fund, says several recent valuation anomalies have made it an interesting income option.

Following more than six years of zero or negative real interest rates in the US, and three rounds of quantitative easing, the impact on the global securities markets has been quite profound. In addition, the fixed income asset class has seen sharp yield compression across the risk spectrum.  It is widely understood this hunt for yield is having an ever greater effect on stock prices too, as the diminished availability of income in bond markets drives investors to seek out other sources. Signs of 'non-fundamental buying' are being seen in parts of the equity market. Non-fundamental buy...