Ignis' Bowie cuts bank debt to lowest ever weighting

Chris Bowie has taken bank exposure to its lowest ever level in his £285m Ignis Corporate Bond fund amid growing fears bondholders will be wiped out if there is another crisis.

Bowie (pictured) sold out of many banks back in 2010 and has been underweight ever since, but this month he reduced exposure to financials to around 20%, the lowest ever for his portfolio and around half the exposure of a typical fixed income fund. “We are now as underweight financials in the fund as we are allowed to be. Why lend money to banks if there is no visibility and no confidence you will get it back?," the manager said. While banks had showed some signs of stability following the crisis, the latest events in the financial markets have shown just how precarious banks' positio...