US financials a better bet than corporates, say investors

Kreitmair, Unicredit: regulatory changes a worry for financial investors

The current pick-up available on US financials make them a better buy than corporates, according to some credit investors who argue the wider spreads do not correlate with a higher risk profile.

Bond investors have increased their exposure to US credit in recent weeks, following a period of heavy restructuring and improvement of company balance sheets, in the hope that the private sector will drive growth in the near term. But within corporate credit, some investors are seeing financials