Global credit investors are jumping back into bank bonds following a sector-wide rout — though concerns about additional tier 1 debt remain.
Money managers from T. Rowe Price Group Inc. to Voya Investment Management see a chance to scoop up bond bargains, betting that the worst is over for financial institutions as the Federal Reserve works to stem contagion.
“If you are willing to buy into the fear, there is definitely an opportunity,” said Samuel Wilson, portfolio manager at Voya. “There is still room for spreads to heal,” he said in a phone interview Wednesday.
Source : Turmoil in banking sector leads to rare bond buying opportunity