RBC Wealth: Back Western banks for yield

Investors should snap up Western bank debt for yield, said RBC Wealth Management's head of fixed income Hakan Enoksson.

Enoksson has a high conviction in Western banks, as he predicts the relatively high yield of bank bonds relative to non-financial corporates is likely to turn around as banks deleverage and spreads come down. "The beauty of the financials space is that we can take any risk we want," Enoksson explained. "It is a complex world. We have covered bonds, senior subordinated, upper tier two, tier ones and derivatives of all of those. "We like to take slightly more risk on financials - you can get some quite decent yield pick-up." Enoksson said he especially favours senior unsecured financ...