Indian and Brazilian banks offer good value

ON SPECIALIST MARKETS

Sanlam's Kokkie Kooyman explains where he is identifying opportunities in the financials sector.

As consumer and business confidence wanes as the probability of a European and US recession looks certain, Western regulators and politicians are behind the curve, preferring to fix the easy issues. The focus is on capitalisation and liquidity of banks and insurers, rather than the important issue of whether taxpayers, bond holders or equity investors will finance the capital misallocations in Greece, Portugal, Ireland, Italy, Spain, UK and the US. Until one knows how and where the loss will be taken, the possibility of unexpected outcomes and knock-on effects is high. Similar to late...