Bank Shareholder or Creditor - Which Side Are You On?

How is banking regulation impacting your investment portfolio?

The financial crisis of 2007-2008 highlighted that existing bank regulations were not high or strict enough. With higher minimum capital requirements now in place, reregulation across many global banks has meant that banks have been under pressure to build up their capital ratios. This has meant that while some banks have never been more profitable, shareholders are not seeing the equity returns they are used to. This makes it harder for investors to receive a return on their equity.

There are two potential losers from the heightened capital adequacy requirements on banks, they are bank and hybrid investors and bank customers.

The PIMCO Capital Securities Fund aims to take advantage of this multi-year deleveraging process of the global banking sector by strategically allocating to subordinated debt instruments, which rank higher in the capital structure than equities, issued primarily by banks, insurance companies and other specialty finance companies.

In the below videos, Robert Mead, Head of Portfolio Management Australia, Philippe Bordereau, Portfolio Manager, Global Head of Financial Research and David Fisher, Product Manager, Core Fixed Income, breakdown the complexities and the impacts of bank reregulation on banking capital structures and why it is opportune time to consider this global asset class as part of a globally diversified portfolio.

Learn more about the PIMCO Capital Securities Fund and the role it may play in your clients portfolio.

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Re-Regulation, the Australian context   Video
Investing in Banks - 2016 and beyond   Video
Diversify your sources of income, especially in retirement   Video
A race to the highest capital ratio   Video
Are you on the right side of the wealth transfer between bank equity holders and creditors?   Video

How to Invest

Contact Us

Please contact your PIMCO account manager should you have any queries.

Brendon Rodda
Senior Vice President , Head of Distribution, GWM Australia

Phone: +61 2 9290 9504
Mobile: +61 478 116 146
Email: Brendon.Rodda@au.pimco.com

David Orazio
Vice President, National Account Manager
NSW, ACT, NT

Mobile: +61 405 570 310
Email: David.Orazio@au.pimco.com

Haydn Scott
Vice President, Account Manager
VIC, SA

Mobile: +61 497 555 335
Email: Haydn.Scott@au.pimco.com

Hugh Holden
Vice President, Account Manager
NSW, NT, TAS

Mobile: +61 400 092 510
Email: Hugh.Holden@au.pimco.com

Tony Cahill
Vice President, Account Manager
QLD, WA

Mobile: +61 438 801 975
Email: Tony.Cahill@au.pimco.com

Marcus Clitheroe
Senior Account Associate
NSW, ACT

Mobile: +61 435 927 782
Email: Marcus.Clitheroe@au.pimco.com