Financial Sector Outlook
July 14, 2015
In this piece, Credit Research Associate Miriam Legrand reviews why Samson is positive on the corporate bond financial sector. Bulletin Summary:
- Samson is fundamentally positive on financials due to the continued improvement of the sector since the credit crisis.
- There has been an increase in regulation since the financial crisis, and although regulation can limit earnings potential, bond holder protection is increased.
- This increase in regulation strengthens risk management, prepares for potential financial distress, and increases supply and liquidity.
- Financials have also seen improvement in fundamental credit trends by increasing the quality of their portfolios and positioning for higher profitability.