BSDZ咨询之国际投行业与资金市场报告英文版(pdf 37页)

Overview of Second Quarter 2004....................2
Revenue Opportunities from Hedge Funds.............9
Market Review......................................17
Corporate Finance and Advisory.....................17
Fixed-Income Trading...............................24
Equity Trading.....................................29
Data Definitions and Abbreviations.................35

 

INVESTMENT BANKING PROFITS DECLINED SHARPLY
The Industry Faces a Tough Second Half Unless Equity Trading Bounces Back
BCG investment banking performance index declined by 29 points to 99 in the second quarter 2004
•However, second quarter results were still better than those of one year ago
•In addition, results from the first half of 2004 were strong
While revenues from fixed income decreased significantly, most of the decline was seasonal
•Revenues from fixed-income trading declined by 13.9% from previous quarter
Low market volatility hit earnings from equity trading hard
•Equity trading revenues were 19.7% lower than levels three months ago
Corporate finance and advisory (CF&A) revenues improved across businesses, but the increase was not strong enough to compensate for lower trading revenues, which declined by 16.1% from the first quarter
•CF&A revenues improved by 12.3% on average
INVESTMENT BANKS NEED TO RETHINK THEIR CUSTOMER SERVICE AND COVERAGE MODELS FOR HEDGE FUNDS
Hedge funds are one of the most attractive customer groups for investment banks
•Hedge funds are growing fast: Industry is expected to continue to grow by 16% annually through 2005
•Relatively stable fee levels in the hedge fund industry provide high-margin business opportunities for investment banks
Hedge fund industry generates revenue opportunities along the value chain
•We estimate that manufacturing, packaging and distribution produced $45 billion in revenue and $15-20 billion in profit last year
•While servicing hedge funds across asset classes created revenueopportunities of
$14 billion and profit of $5-6 billion
Servicing the hedge fund community creates challenges for investment banks
•Investment banks historically have operated and organized aroundproduct silos, while many hedge funds require an integrated product and service offering across asset classes
Investment banks must rethink their customer service and coverage models. In particular, they should
•Build cross-functional and cross-product sales forces
•Unbundle their service offerings, e.g., provide direct market access with low execution support while providing trading algorithms and first-call research support

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