Western Asset Management: Do not give up on US banks

Negative market sentiment should not deter investors in US banks, said Ryan Brist, head of US investment grade credit at Legg Mason subsidiary Western Asset Management.

Although Brist admitted investors have had a "hazardous" experience with US bank equities and fixed income securities recently, he said there are now grounds for optimism and it is not the time to abandon the sector. "While it appears that no immediate positive catalysts are on the horizon, we believe now is not the time to give up on the US banking sector," said Brist. "Investors have been focusing on the near-term negative details and have all but disregarded what we believe are the solid, longer-term fundamentals," he added. Low interest rates, legal and regulatory pressures co...