Gross warns against investing in 'tantalising' financials

Sector trading at high yields

Janus Capital's Bill Gross has warned investors tempted by the 'tantalising' high yields on offer in the financial sector to stay away from this area of the market.

Gross (pictured), who joined Janus in 2014 from PIMCO, said banking stocks are becoming more alike with utilities which are highly sensitive to any changes in interest rates. He highlighted share prices of firms such as Credit Suisse and Citibank had already significantly fallen in the aftermath of the financial crisis. How worried should investors be about the health of the financials sector? In his monthly update for investors, the veteran bond manager said: "The recent collapse in worldwide bank stock prices can be explained not so much by potential defaults in the energy/commodi...