Pothalingam sees value in financial bonds

Allianz Pimco manager remains overweight financials, believing the sector's bonds still offer best value for sterling fixed income investors

Allianz Pimco's Ketish Pothalingam believes financial bonds are still offering the best value for sterling fixed income investors. Pothalingam, the £103m Sterling Total Return manager, says he remains overweight financials but is taking a more stockpicking-focused approach in 2010. "Financials are the biggest de-leveraging story in town. In terms of spreads, they are offering the best value - it is still a core holding for us," he says. "Where we feel relative value has been squeezed, we have moved to another part of the market, but everything points to credit being cheaper than it...