Polar Capital: Financials represent multi-decade opportunity

Banks 'part of the solution'

Despite current market turmoil hitting banks' share prices, financials represent a key investment opportunity, according to Polar Capital.

Polar Capital Global Financials trust managers John Yakas and Nick Brind said while banks' share prices had taken a hit during the coronavirus crisis they were not the core problem and would eventually be seen as "part of the solution". In a note to clients, the managers said: "Rather than having to recapitalise banks, governments are providing guarantees to stop loans defaulting in the first place (both retail and commercial support, in effect shielding bank shareholders from loan losses) and so potentially enabling the banking sector to provide finance in the face of illiquidity in bro...