Prudential Financial Inc (PRU-N)

Is shying away from all financials for now, until the banking crisis ends. This looks compelling though. This could go lower.

US Lifeco vs Financials PRU-N is at risk to interest rates on their premiums collected as he thinks yields will remain neutral. He is not keen on BAC-N either at this point for the same views of the yield curve. Things can't get any better for each right now -- a no man's land right now. He sees a bit better bid for Lifecos, but mostly from a defensive position. There are more compelling areas than these two spaces.

BAC vs. PRUDENTIAL If both benefit from wider rates, the spreads will widen for U.S. banks, which have been
pulling back. BAC has A 10% market share in the U.S. which is as big as the entire Canadian banking system. BAC has lot of exposure to the plain mortgage side where spreads should expand. Be patient and you'll see earnings and dividends. U.S. lifecos should benefit, too, but so will Canadian ones like MFC-T (which is a good entry point now). He prefers American banks over their lifecos.

BAC-N vs. PRU-N. He leans more toward the banks. You are taking on yield curve and interest rate risk with the banks, however. BAC-N is his preference.

Prudential Financial (PRU-N) or the banks? He would own both. You need to diversify within your financial sector. The banking sector grows differently than life insurance. Life insurance is a bit more dependent on where interest rates are heading, and he thinks they are going to continue to creep higher. This company has a very strong balance sheet and a tremendous amount of capital in their balance sheet.

MetLife, Prudential or the American banks? He would give a bit of a nod towards the banks. As a general proposition, there are more ways the banks can boost earnings. The purchase of insurance is very much out of favour. Regarding MetLife versus Prudential, he would give a slight nod to this one as they have been doing some cost cutting which will help their bottom line.