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Deutsche Bank AG
JPMorgan Chase & Co
Goldman Sachs Group Inc/The
Bank of America Corp
Deutsche Bank AG (DB), Germany’s largest lender, has the biggest share of the U.S. fixed-income trading market this year, taking the top spot from JPMorgan Chase & Co. (JPM), according to consulting firm Greenwich Associates.
Deutsche Bank, which was tied with Barclays Plc (BARC) for second place in a similar survey last year, has a 12.2 percent market share, Greenwich Associates said today, citing a study it conducted based on interviews with 1,085 active institutional investors in the U.S. Goldman Sachs Group Inc. (GS) was second with a 11.2 percent share, followed by JPMorgan at 10.8 percent.
Fixed-income revenue at the 10 largest global investment banks dropped at least 25 percent each of the past two years to $73 billion in 2011, according to data from analytics firm Coalition Ltd. Banks including Credit Suisse Group AG and Morgan Stanley (MS) have pledged to shrink their fixed-income businesses as revenue wanes and new rules require more equity capital be held against the business.
“Driving the shifts in dealer market share and position were strategic decisions made by individual dealers about how best to approach the business of fixed-income trading in an era of dramatically increased capital reserve requirements,” Stamford, Connecticut-based Greenwich said in its report.
Deutsche Bank, based in Frankfurt, has the largest market share in trading rate products such as government bonds and interest-rate derivatives, according to Greenwich. Bank of America Corp. (BAC) had the highest share in credit products, such as corporate bonds and leveraged loans.
Citigroup Inc. was the share leader in municipal bonds, while JPMorgan led banks in emerging-market trading, Greenwich said. Bank of America scored the highest marks for quality in both sales and trading, according to the study.
The study took place between February and April 2012, Greenwich said.
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