Kames: Time to up bank exposure as Europe deal looms

Actions taken by the European Central Bank this week, combined with the EU's efforts to sign a new treaty, have made it too risky to be underweight bank bonds in Europe, Kames Capital's fixed income team has said.

David Roberts, co head of fixed income and manager of the Kames Capital Sterling Corporate Bond fund, has taken exposure to banks back up to neutral, having been underweight the sector. Roberts said the actions of the ECB, as well as politicians, have removed short-term worries about the potential for a run on banks. "The clear statements of intent seen in the past week mean running an underweight is, for the moment at least, no longer appropriate," Roberts said. The fund had been running a short position on banks but closed it out this morning, reversing a negative view they have ...