Investment banks: World's best investment banks 2000

Global Finance, Nov 2000 by List, Peter, Platt, Gordon, Rombel, Adam

The global economic hegemony that US business has enjoyed over the past year is reflected in the country's investment bank performance. Wherever investment banking growth has occurred over the past year, American financiers have led the bulk of the transactions. As M&A activity in the banking sector shakes out, the large US banks have broadened their core competencies and increased their market share across the planet-with few exceptions. The recent acquisition of Bankers Trust Alex. Brown makes Deutsche Bank one such exception in the area of foreign exchange sales and trading. Deutsche Bank now operates the most potent forex operation globally, but the bank's foundation of strength is still in Europe where is it exercises muscle in debt underwriting and is a formidable force in other banking categories.

Goldman Sachs is nearly undisputed in global and regional equity underwriting and operates exceptionally well in most other categories of investment banking around the world. As a leader in the broad array of investment banking services that makes up corporate finance, Goldman nearly sweeps the category. Blocking Goldman's complete control of equity and corporate finance are two other US banking powerhouses-Salomon Smith Barney (Citigroup) and Merrill Lynch. SSB is a particularly strong in securitization and derivatives and has performed well in corporate finance in emerging markets. Merrill Lynch leads in global debt underwriting, which is bolstered in part by the bank's holding the best record in North America and Asia, year to date. In research, only Morgan Stanley Dean Witter challenges Merrill's dominance of every region. Although Merrill was a significant player, observers say MSDW provided the best research in Europe.

Chase Manhattan Bank and Banc of America Securities each offer premier syndicated lending services, although Chase has had the best overall global presence in this arena. Carving out a niche in derivatives, J.P Morgan capitalized on its strength in the category, winning top rankings in Europe and Latin America.

In Asia, longtime local presence HSBC maintained its hold on forex sales and trading while Dai-Ichi Kangyo Group managed to emerge ahead of the big American banks for the top position in syndicated lending in the region.

GLOBAL

GOLDMAN SACHS

Goldman Sachs topped the stock [underwriting league tables in North America, Asia, and Europe through August of 2000. And in a challenging new-issue environment, Goldman has the biggest market share of advising on US and European initial public offerings. The firm's top deals included a $13 billion secondary issue by Deutsche Telekom and the $10.6 billion IPO for AT&T Wireless.

MERRILL LYNCH

Merrill Lynch is the best global bank in debt underwriting and a regional winner in North America and Asia. Merrill was the joint lead manager on a global bond issue for Brazil, which facilitated the retirement of $718 million in Brady bonds. It was the lead manager of a $7.5 billion, three-tranche issue for Ford Motor. In Asia, Merrill stimulated investor interest and broad participation in a range of issues that were well oversubscribed. It was lead manager of Tunisia's global samurai bond, the first by any issuer.

DEUTSCHE BANK

Deutsche Bank has emerged as the premier foreign exchange operation globally through aggressive and innovative efforts. Drawing on its ex-- pertise in Europe's dynamic currency market, Deutsche acquired Bankers Trust and its custody of assets, totaling around $3.6 trillion, with some 4,000 customers. With more than 12.5% of the global market share, Deutsche operates its forex out of 38 locations worldwide, leading spot and options pricing and trading in many regions. Top research, risk management, and online trading further contributes to Deutsche's lead in global forex.

GOLDMAN SACHS

Two bread-and-butter areas of corporate finance are underwriting stock sales, including IPOs, and advising on mergers and acquisitions. It is in these areas that Goldman Sachs has established a dominant position globally and in nearly every region of the world, as evidenced by its standings in the league tables and victory in the regional categories. Goldman also makes the top five in most fixed-income league tables, with particular strength in European high-yield issues.

CHASE MANHATTAN

Chase Manhattan Bank controls more than a quarter of global syndicated lending, supported by impressive performances in Europe and North America. One notable example of this accomplishment is the financing Chase provided for a $1.1 billion leveraged buyout of US-based Mark IV Industries by European buyout firm BC Partners and the Italian Interbanca. The cross-border syndication included an Italian term loan and a unique $260 million equity asset sales bridge.

SALOMON SMITH BARNEY (CITIGROUP)

Salomon takes first prize in securitization by topping the global league tables and those in Europe and North America.Through the first two-thirds of 2000, Salomon had managed 269 mortgage-backed and asset-backed deals worth $49 billion, according to Thomson Financial Securities Data. That compares with the 213 transactions worth $39 billion that second-place Lehman Brothers managed.