Financial Times – 7/17/14

July 17, 2014  |   Uncategorized   |     |   0 Comment

Michael Kastner, principal at Halyard Asset Management, says the increased regulatory oversight on US global banks means a catalyst to drive their share price higher is no longer present. He says investors are trying to work out whether “the Fed wants these banks to be innovative and create new products that can drive earnings or are we going back to an older safer banking model”.

The divergence between banks and their price to book ratios is not surprising says Mr Kastner. “Global banks have exposure to all the problems in other parts of the world so investors have to consider what these institutions have on their books that they may not know.”

Bank bonds gain edge on stocks as risk factor fades