One way to think about sell-side equity investment research is that it is one product for retail investors and a completely different product for institutional investors, and the dividing line between the two products is right at the top of the report. At the top of an analyst's research report it says "Buy" or "Sell" or "Hold"; that's for retail. Everything below that (the financial modeling, the analysis of news, the industry overviews), and everything outside of the report (phone conversations with analysts, meetings with corporate executives), is for institutions.
Matt Levine again. Matt knows the business, he is senior executive material.
But, if I summarize a complex report into a simpler report, then it must be done with a series of single step recombinations, and none of the sequential steps should change the aggregate outcome by more than tradebook error.
We are back to graph theory, where generators are represented as spanning trees under flow. Making sure that all parties in the pits can price 'around the bend' means all parties can make single point adjustments on their generators, and keep up with the market. It is a completeness issue, no trader need jump a concavity.
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