Threadneedle's Weldon calls end of US financial crisis

The results of last December's stress tests have prompted Threadneedle's Cormac Weldon to move to an overweight in financials as he calls the end of the banking crisis.

Weldon, running the £1.8bn Threadneedle American fund, said the results of the Federal Reserve’s stress tests indicate the sector has returned to health. The manager was underweight the sector through most of 2011, but moved to an overweight position late last year. “Last year’s stress tests were severe and even factored in the possibility unemployment levels could spike to 13%,” said Weldon. “The fact the banks passed these tests means they are able to start buying back stock and raising their dividends again. The sector is now well-reserved, much less leveraged and healthy in compar...