Citigroup Tops Deutsche Bank in Fixed Income, Greenwich Says

Updated on
  • Barclays, Goldman Sachs, JPMorgan round out top five dealers
  • Citigroup only bank to rank in top two in every major region

Citigroup Inc. is the world’s biggest fixed-income dealer, unseating Deutsche Bank AG from the top spot and edging out rivals Goldman Sachs Group Inc. and JPMorgan Chase & Co., according to a Greenwich Associates survey.

With a market share of more than 10 percent for 2015, New York-based Citigroup had a “meaningful lead” over the other banks in the survey and is the only one to rank in the top two in every major region, Greenwich Associates said Wednesday in a statement. Deutsche Bank, Barclays Plc, Goldman Sachs and JPMorgan also made the list of the top five global market-share leaders, according to Greenwich Associates, which didn’t provide individual rankings for the other banks.

Fixed-income trading has been pressured by falling commodity prices and interest rates at near record lows. Firms such as Morgan Stanley are retreating from bond trading as the industry also copes with new rules that force banks to hold more capital against risky assets. Citigroup’s fourth-quarter fixed-income trading revenue dropped 14 percent from the third quarter, though it was up 7 percent from a year earlier.

Citigroup boosted its fixed-income market share by 0.60 percentage point to 10.2 percent last year, the bank said in a statement Wednesday in response to the survey, which polled almost 4,000 fixed-income investors globally. Citigroup has gained more market share than any other large dealer since 2008, according to the statement.

The bank ranked third in market share for issuance of U.S. investment-grade corporate bonds in 2015, according to data compiled by Bloomberg. Its sales of more than $128 billion gave it almost 10 percent of the market, behind JPMorgan at about 13 percent and Bank of America Corp. at 11.6 percent.

Representatives for Greenwich didn’t immediately respond to a request to explain the methodology behind this year’s report. Last year, Greenwich said it interviewed fixed-income investors in Asia, North America and Europe about topics including service-provider assessments, trading practices, market-trend analysis and investor compensation to come up with the results.