Paying a premium for bank analysts

Bank analysts are paid more than other credit analysts; but are they really worth it? Toby Nangle did the number-crunching to find out

Nigel Sillis, head of credit research here at Baring Asset Management, is in the market for a new credit analyst. His conversation with our headhunter went something like this:

Nigel: I'd like a new TMT analyst please.

Headhunter: TMT you say. Not many of those around. Fancy broadening the search?

N: How about a bank analyst then?

HH: Ooh ... that'll cost you.

N: Excuse me?

HH: Bank analysts - they're much pricier.

N: Why's that then?

HH: Banks: more difficult aren't they?

While Nigel was delighted that