Wells Fargo lures risk-averse with 'almost' Treasuries

Investors seeking higher yields than US Treasuries with comparable risk should consider bank bonds backed by the Federal Deposit Insurance Corp., said Gary Pollack, head of fixed-income trading and research at Deutsche Bank AG.

American Express Co issued FDIC-backed bonds in December with three-year maturities yielding 2.501 percent and JPMorgan Chase & Co's three-year notes are yielding 1.821, according to data compiled by Bloomberg. That compares with yields of 1.027 percent for three-year Treasury notes.

"We're buying these for our clients because they're 'almost' Treasuries with better yields," said Pollack, who helps oversee $12 billion at Deutsche Bank AG's Private Wealth Management unit in New York.