Bank stocks still viable

By Staff | August 15, 2012 | Last updated on August 15, 2012
1 min read

Despite negative headlines, bank stocks are still strong, says Andrew Torres, CIO of Lawrence Park Capital Partners.

“We’re seeing some positive returns from our banking positions,” he says, noting Royal Bank of Scotland’s preferred shares have increased in value by 11% over the last month. Read: Banks face multiple challenges in 2012

When asked about hedging, Torres says, “Tail-risk hedging is extremely expensive because so many people are focused on that risk. In this market, the better way to hedge is to reduce position sizes and to focus on liquid markets.”

For more, watch this video, where Lawrence Park talks about how bond issuance, the summer slowdown, and fixed-income risks. staff


The staff of have been covering news for financial advisors since 1998.