With jobs in investment banking once again looking shaky, it helps to know which business areas within which banks are doing well.
Research firm Coalition has provided an update on which large investment banks thrived and which large investment banks thrashed about unsuccessfully in the first quarter.
There are a few interesting developments. J.P. Morgan, while largely still dominating its rivals, no longer appears so omnipotent. It slipped from first in equities during the first quarter of 2014, to third this year. This is, however, supplanted by two positive developments – it’s now the top investment bank in IBD and the sole leader within the fixed income currencies and commodities division (FICC) – at the expense of Deutsche Bank.
Deutsche Bank’s commitment to the universal bank model had been vindicated by its upward trajectory in previous rankings. Now, in the wake of its structural review that is likely to see thousands of jobs eliminated, it has slipped from the top of the pile in FICC. Its second place in FICC means that it’s third overall, down from second at this point last year. Deutsche is now on a par with Goldman Sachs and Citi in the FICC space.
Goldman Sachs and Morgan Stanley are now the top investment banks in equities, pushing out both Credit Suisse and UBS from the top three. Worryingly for employees of these banks, equities was the only sector where they competed with the large US firms.