J.P. MORGAN IS NO. 1 IN EUROPEAN CREDIT RESEARCH
In the wake of Greece’s near-default last spring and Ireland’s request for financial rescue in November, plus ongoing fears about the creditworthiness of other countries with soaring deficits, demand for European fixed-income research has skyrocketed.
“Most clients see the world as incredibly risky given the size of fiscal deficits in Europe and the U.S.,” observes John Normand, global head of foreign-exchange strategy at J.P. Morgan in London.
Which banks provide the guidance that money managers find most helpful as they seek to navigate these risks in search of investment rewards? No one does it better than J.P. Morgan, according to participants in Institutional Investor’s 2011 All-Europe Fixed-Income Research Team survey. The firm wins 12 total positions, including seven teams that are ranked No. 1 in their respective sectors.
Deutsche Bank claims second place, with six positions; the German bank has five teams in first place. Barclays Capital and Morgan Stanley tie for third, with four positions each. The results reflect the opinions of nearly 300 individuals at more than 200 institutions that globally manage an estimated $3.5 trillion in European fixed-income assets.
To view the complete list of winning firms, click on the Leaderboard tab above.
To view the winning teams – first, second, third place and runners-up – in each of the survey’s 13 sectors, click on Leading Analysts.
For information about how this ranking was compiled, click on Methodology.
For information about our detailed Research Team reports, please contact Alyssa Walker at awalker@iiresearchgroup.com.
Picking the Team
To select the members of the 2011 All-Europe Fixed-Income Research Team, Institutional Investor sent questionnaires covering 20 investment sectors to bond specialists at leading money management firms around the world. We received responses from nearly 300 individuals at more than 200 institutions globally managing an estimated $3.5 trillion in European fixed-income assets.
Respondents vote for both individual analysts and for a firm’s entire team; these votes are combined for firms in each sector. A numerical score is produced for each firm by weighting each vote based on the respondent’s European fixed-income assets under management and on the rank awarded to the firm or individual. The numerical scores are used to determine the rankings. A team is designated runner-up when its scores falls within 35 percent of the third-teamer score.
Typically, the analyst recognized as the leader of each winning group is either the individual designated as team leader by the firm or the analyst recognized most frequently by investors. In the High-Yield and Investment-Grade research categories, only those analysts who publish independent research as defined by the Financial Services Authority are eligible to be recognized as team leaders. No such restriction applies to team leaders in Economics & Strategy, in accordance with FSA regulations. Analysts who switched firms after October 29, 2010, are cited at their previous organizations.
II last published an All-Europe Fixed-Income Research Team in 2008; because of the time that elapsed between that survey and this, and the structural changes to the ballot, no historical data are attached to this year’s results.
We polled four High-Yield sectors, only one of which, Basic Materials, produced complete results; Manufacturing/General Industrials and Retailing/Consumer Products each produced only first-place teams, and Technology, Media & Telecommunications produced only first and second teams. Of six Investment-Grade sectors polled, only one — Banking & Financial Services — produced publishable results; Basic Materials, Manufacturing/General Industrials, Retailing/Consumer Products, Technology, Media & Telecommunications and Utilities did not receive enough votes to warrant inclusion.
Eight of the ten Economics & Strategy sectors produced publishable results: Asset-Backed Securities Strategy, Currency & Foreign Exchange (first place only), Economics, General Strategy, High-Yield Strategy (first place only), Interest Rate Strategy, Investment-Grade Strategy (first and second place only), and Quantitative Analysis; neither Bond Market Indexes nor Credit Derivatives garnered enough votes for publication.
This ranking was compiled by Senior Editor Tucker Ewing and Associate Editor Denise Hoguet under the direction of Managing Editor Thomas W. Johnson.
For information about our detailed Research Team reports, please contact Alyssa Walker at awalker@iiresearchgroup.com.
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