Citigroup: Low Valuation With Great Macro Backdrop

Romil Patel
942 Followers

Summary

  • Higher rates and wider spreads will help Citigroup raise its interest income.
  • Sale of assets in Mexico will help improve capital ratios.
  • Stock buybacks at this cheap valuation should put a floor on the stock price.

Office building of Citi Bank in London

Ceri Breeze

Overview

I believe Citigroup (NYSE:C) is the deepest value play in financials. The current macro environment is helping rather than hurting Citigroup in my view, as higher rates, wider credit spreads, and a yield curve that will eventually have to steepen

This article was written by

942 Followers
I focus on thematic investing, crisis investing, systematic options trading through both premium selling and long-vol positions, and discretionary global macro. I have experience with private M&A along with many years of publicly-traded equities and equity-based derivatives trading experience.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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