Table of contents
Ten key investment banking conclusions ................................................ 5
Executive summary.................................................................. 6
Positioning in the European investment banks .................. 12
Deutsche Bank – rated In Line ......................................................12
Barclays – rated Outperform ......................................................13
Credit Suisse – rated In Line ..................................................14
UBS – rated Underperform..........................................................15
Investment banking – what makes it tick........................................ 16
Market size and share .....................................................................16
Drivers of growth ..........................................................................17
Investment banks – future economics ........................ 23
Absence of operational leverage ..............................................23
Profitability diagnosed ..........................................................24
The new business model............................................27
Tomorrow’s investment bank...........................................34
Fixed income............................................................... 38
Rates ......................................................................... 40
Market size ..........................................................................40
Market shares...................................................................................41
Market drivers..............................................................42
Credit............................................................................ 46
Market size ........................................................................46
Market positions ...............................................................48
Credit derivatives........................................................................50
Market drivers...................................................................51
Success factors ...............................................................52
The future of credit .............................................................53
Forex ............................................................................. 56
Market size ...........................................................................56
Market drivers.....................................................57
Forecasts.................................................................59
Commodities .................................................... 60
Market size ....................................................................60
Market drivers....................................................61
Success factors ................................................................62
Future development................................63
Equities............................................................ 65
Market size ......................................................................65
Market participants .....................................66
Market drivers..................................................67
Future development..........................................69
Advisory ......................................................... 73
Equity capital markets (ECM) ...................................73
Debt capital markets (DCM) .................................75
M&A..................................................77