Results to the European stress tests are due out on Sunday. Irrespective of their contents, Bloomberg thinks it’s identified the top European investment bank of the moment. It is, apparently, Credit Suisse.
UBS had assumed the mantle of analysts’ favourite bank. However, UBS’s crown slipped after it said it faces 'material' fines in relation to FX fixing. Since UBS its fixed income business significantly (although it’s seemingly been rehiring recently), the Swiss bank is also in a less strong position to benefit from a return to volatility.
“Credit Suisse has a key advantage,” Alevizos Alevizakos, an analyst at Keefe Bruyette & Woods told Bloomberg. “You have a good visibility in terms of earnings since they don’t expect massive hits [from litigation].” “Credit Suisse is in a relatively more comfortable situation [than Barclays, Deutsche, or UBS]” agreed Omar Fall, an analyst at Jefferies.
Separately, Barclays’ investment bankers may not be the only ones getting early nights. As was reported earlier this month, Barclays’ investment bankers have been prohibited from going on nights out with dipsomaniac brokers. Now, law firm, GQ Employment Law says an unnamed bank in London has imposed a midnight curfew upon client entertainment and mandated that entertainment involving its junior staff must end at 10pm. It’s not clear whether this bank is Barclays, or a rival.
In capping bonuses, the European Union is favouring large firms. (Medium)
Third quarter net income at Evercore rose 74% year-on-year. (Bloomberg)
Now that volatility is returning, banks’ advisory businesses are losing out as deals get pulled. The collapse of US drugmaker AbbVie’s $56.1 billion deal for UK-listed peer Shire and US drugmaker Salix’s $2.7bn merger with Cosmo lost banks $57m in fees. (Financial News)
Unusually, Espirito Santo Investment Bank opened a prop desk last October. This has since been closed. (WSJ)
How to become an equity fund manager. (Banker's Umbrella)
Only one in every 428 applicants to Google gets hired. (Quartz)
The fear right now is nobody wants to jump into an organization they think is still restructuring. (Wharton)
Business Travel is for classholes. (Medium)
Seven pictures you must never post on LinkedIn. (Undercover Recruiter)
Why the worst people often get promoted. (Inc)