In case you'd forgotten, Deutsche Bank does still have equity researchers after pulling the plug on much of its equities sales and trading business and they do still issue interesting research notes. The latest in the DB oeuvre is an update of its regular 'capital markets pulse' on how well wholesale banking businesses are performing at a particular point in time. Right now, Deutsche says you want to work in areas like rates trading and high yield bond issuance.
The new pulse is based on this week's third quarter results from Morgan Stanley, Goldman Sachs, JPMorgan, Citi and Bank of America. It's now clear that the third quarter wasn't as bad as banks intimated in August, says DB. It's also clear that Q3 was a very good time to work in on a rates desk with rates trading "particularly strong" in the third quarter.
The strength of rates businesses should work well for Barclays, which is due to announce its own third quarter results on October 25th. Deutsche says that rates trading accounts for nearly 6% of Barclay's group revenues, only slightly behind rates' contribution at Goldman Sachs.
Some businesses are looking even more perky than rates desks though. The charts below contain the distilled wisdom of Deutsche's banking research team. Year-on-year, they suggest that high yield debt issuance is the place to be and that European equity index derivatives is also looking like a safe space. By comparison, however you cut it, you don't want to work in syndicated lending or broader European investment banking now...
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