Summary
Barclays Capital and J.P. Morgan emerged from a year of historic crisis as the leaders in U.S. fixed-income trading as a host of regional and foreign dealers capitalized on bulge bracket disruptions to build new ties with U.S. institutions.
Analysis
Barclays Capital and J.P. Morgan emerged from a year of historic crisis as the leaders in U.S. fixed-income trading as a host of regional and foreign dealers capitalized on bulge bracket disruptions to build new ties with U.S. institutions.
For the first time in more than a decade, the number of fixed-income dealers used by the typical U.S. institution fell by a meaningful amount from 2008 to 2009. The primary driver of that decline was obviously the consolidation among major dealers, as most U.S. institutions had trading relationships with one or more dealers that ceased to exist during the crisis. However, the results of the Greenwich Associates’ annual 2009 North American Fixed-Income study suggest that institutions were also proactively cutting back on dealer rosters due to concerns about heightened counterparty risk.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
