Part II: How worried should investors be about the health of financials?

Click here for part one Ed Legget, manager, Artemis UK Growth fund Great risks remain We see upside in domestically focused UK financials after the recent sell-off. Bad loans are an issue for earnings, not solvency, for these companies. The prospect of defaults by oil and mining companies worries credit markets, but looks manageable for UK-focused banks and life assurers. That is quite different from 2007, when multiples of book values were threatened by the US sub-prime crisis. Housing remains the largest exposure for the retail banks. Falling unemployment, low interest rates and...