Deutsche Bank AG (DBK) retained its position as the world’s top bond dealer last year even as it lost market share and JPMorgan Chase & Co. (JPM) and Citigroup Inc. (C) gained, according to a study by Greenwich Associates.
Deutsche Bank controlled 10 percent of global institutional fixed-income trading and JPMorgan and Barclays Plc (BARC) were tied for second with 9.2 percent, the Stamford, Connecticut-based research company said in a statement on its website today. Deutsche Bank’s share was 10.7 percent in 2012, Barclays had 9.8 percent and JPMorgan 8.8 percent.
Deutsche Bank’s bond trading revenue, which accounts for the largest share of income at its investment bank, slid in the fourth quarter as the bank shrank its assets and its clients in Europe held off trades amid slower economic growth. Co-Chief Executive Officer Anshu Jain said yesterday that while he’s putting profit ahead of market share in fixed income, the firm will invest in the U.S. to catch up with competitors there.
Citigroup’s share was 8.9 percent compared with the 8.1 percent Greenwich reported for 2012. Greenwich asked 4,000 investors to name and rate the dealers they use for specific fixed income products.
Deutsche Bank’s revenue from trading debt and other products slid 31 percent to 978 million euros ($1.32 billion) in the fourth quarter from a year earlier, the Frankfurt-based company said yesterday.
The five biggest U.S. investment banks saw their total revenue from trading fixed income, currencies and commodities fall 4.2 percent to $10.2 billion in the fourth quarter from a year earlier, data compiled by Bloomberg Industries show.
“You will see us drop off in revenue league tables, but not materially,” Jain, a 51-year-old former debt salesman, said on a conference call with analysts yesterday. “The stats that we’re targeting most carefully is our market share in businesses that we’re committed to, which has not budged. Indeed it has even gone up.”
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