banks

CoCos: Too easy to ignore the risks?

Domestically-oriented stocks have helped power significant gains for UK markets this morning, as investors responded positively to news of a Conservative election win.

Polar Capital Global Financials trust manager Nick Brind is backing smaller banks to outperform, and predicts a significant boost to financial sector dividends this year.

A sharp rise in the value of subordinated bank debt means the likes of contingent convertible securities (CoCos) face a sharp mean reversion in future, according to Kames Capital's Iain Buckle.

'I have to prove I am credible in UK All Companies'

Fund managers have backed Italian banks to continue driving European equities higher this year, aided by a more supportive macro backdrop and beneficial domestic reforms.

Lloyds Banking Group has agreed to sell its shareholding in TSB to Spanish bank Sabadell, in a deal which will value the bank at £1.7bn.

Some of the biggest banks in the US have been given the green light to pay their largest dividends since the financial crisis, following the Federal Reserve's 'stress test'.

There are plenty of mispriced contrarian investment ideas in Japan, writes Eastspring Investments' Dean Cashman.

Rob Burnett's decision to retain a contrarian position to peripheral banks in his Neptune European Opportunities fund has dragged on performance in recent years.