Credit investors will benefit from financials becoming more ‘utility-like’, says Pimco’s Spajic

With banks cutting leverage, increasing capital and changing their funding models, they offer good value for credit investors.

Luke Spajic, Pimco

The way banks have been doing business and raising funds since the global financial crisis has made them more attractive to bond investors, according to Luke Spajic, head of European credit and ABS portfolio management at Pimco in London.

The need for the developed world to reduce leverage and for banks to clean up their balance sheets after the crisis has led to bank debt offering more predictable returns.

“Deleveraging points to the bank story,” says Spajic. “Banks cannot borrow like they did

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