Samson Financial Sector Outlook

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.

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