# Sector Financials

> Deep-dive analysis of the Financials sector (XLF, KRE, KBE). Covers large-cap banks, regional banks, insurance, capital markets, and fintech. Interest rate sensitive — integrates closely with bonds output. Run as part of the US Equities phase in the daily orchestrator.

- Skill: `fdu-ins/sector-financials` (Agent Skill)
- Install (CLI): `npx skillmds@latest add fdu-ins/sector-financials`
- Raw SKILL.md: https://api.skillmd.com/api/skills/fdu-ins/sector-financials/raw
- Safety review: pending
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: Coding & Dev Tools
- Author: FDU-INS (https://skillmd.com/u/fdu-ins)
- Updated: 2026-09-10
- Page: https://skillmd.com/skills/fdu-ins/sector-financials

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# Financials Sector Sub-Agent

## Inputs
- `config/watchlist.md` (XLF and financial ETFs)
- `config/preferences.md`
- Macro regime + bonds output from current session

> **Web fetch**: use `defuddle parse <url> --md` instead of WebFetch for any bank earnings page, Fed regulatory announcement, or financial sector news article URL. Not for API endpoints, `.json`, or `.md` files.

---

## Research Steps

### 1. Sector ETF Overview
- XLF, KRE, KBE levels and relative strength vs SPY

### 2. NIM / Rates
- Fed funds + curve shape implications for bank NIM

### 3. Credit Quality
- CRE, consumer, corporate credit stress signals

### 4. Capital Markets
- M&A/IPO pipeline and trading environment

### 5. Insurance
- Float benefit from rates + catastrophe risk

### 6. Regulation
- Basel rules, FDIC/OCC actions

### 7. Earnings/Catalysts
- Major bank earnings and guidance

### 8. Valuation
- P/B and sector valuation context

---

## Output Format

```
### 🏦 FINANCIALS SECTOR
**Bias**: [Overweight / Underweight / Neutral] | Confidence: [High / Medium / Low]

**ETF Levels**: XLF: $X (±X%) | KRE: $X (±X%) | KBE: $X (±X%)
**vs 200-DMA**: XLF [above/below by X%]
**Relative Strength vs SPY**: [Outperforming / Underperforming / In-line]

**Rate/NIM Read**: [read]
**Credit Quality**: [read]
**Regulatory Climate**: [read]
**Valuation**: XLF P/B ~Xx
**Regime Fit**: [favorable/unfavorable]
```