Angel Oak's Pate sees 'a once-in-a-decade opportunity for the banking space'

Cheryl Pate, senior portfolio manager at Angel Oak Capital -- co-manager of the Angel Oak Financial Strategies Income Term Trust -- says that current problems in the banking sector are setting up a recovery, noting that 'opportunities like this are fairly rare, probably a once-in-a-decade opportunity for the banking space,' with the biggest opportunities being on the debt side as spreads start to normalize under the rules and conditions. Pate says investors have good reason to believe that discounts for bank-oriented closed-end funds are likely to narrow as sentiment improves for the sector, with debt benefitting from a consolidation cycle in the industry while the equity benefits from renewed confidence and better positioning for the future.