Financials Sector Coverage

Hi all,

I've searched this topic in the forum and there's only a couple of comments from years ago hence this post.

What are the particularities of covering the financial sector? I've starting reading up and the key metrics are different, and apparently there is more exposure to macro, which intuitively makes sense given its based of rates spread etc, but it is the latter point I want to explore, because I actually want to get into macro and would enjoy this aspect.

  • Is it highly macro exposed?
  • If so could I lever this for exit opps potentially to a more macro role if I landed a financials sector gig?

From the posts in this forum many people were weary of being pigeonholed as banks/macro, but if I'm looking for some macro exposure (which would make me in the minority in ER?) then would be that be a positive in sense?

On the corporate side of the coin I believe I would enjoy the technical aspects of analysing banks' financial statements, compared to say consumer staples/discretionary (yawn), but am I possibly misplaced?

Any comments on insurance would be great too.

Many thanks for your thoughts.

 

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