Goldman Sachs Turns Bullish as Bond Buyers Shun Banks
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Goldman Sachs Group Inc. is telling investors to buy European bank stocks for the first time in more than 16 months. Bond buyers are taking the opposite view on concern that policy makers will fail to staunch the debt crisis.
Banks in Spain, Italy and Greece have led the Bloomberg Europe Banks and Financial Services Index 16 percent higher since November. While shares of Spain’s Banco Santander SA rallied 23 percent and Italy’s UniCredit SpA jumped 25 percent, both lenders had to offer investors record premiums over government debt when they sold covered bonds in the same period.