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Barclays Wins Euromoney's Best Global Debt, Best Investment Bank, And Best Global Flow House Of The Year Awards

Tyler Durden's picture




 

Financial magazine Euromoney, which in addition to being a subscription-based publication appears to also rely on bank advertising, has just held its 2012 Awards for Excellence dinner event. And in the "you can't make this up" category we have Barclays winning the Best Global Debt House, Best Investment Bank, And Best Global Flow House Of The Year Awards. Specifically we learn that "the bank’s commitment to the US is exemplified by the addition of another global senior manager to the country – Tom Kalaris is now going to be splitting his time between New York and London as executive chairman of the Americas as well as overseeing wealth management. Jerry del Missier, who has overseen the corporate and investment bank through its Lehman integration and was recently appointed COO of the Barclays group, says the bank is well positioned. "We came out of the crisis in a stronger strategic position and that has allowed us to continue to win market share and build our franchise. Keep in mind that the US is the largest investment banking, wealth management, credit card and investment management market in the world, and in terms of fee share will remain the most dynamic economy in the world for many years. As a strong global, universal bank operating in a competitive environment that is undergoing significant retrenchment, we like our position." That said, with the Chairman, CEO and COO all now fired, just who was it who accepted the various award: the firm's LIBOR setting team? And if so, were they drinking Bollinger at the dinner?

From the oxymoronically named Euromoney (shouldn't it be Eurorehypothecation, or Eurospidermantowelsascollateral?) which just held its

Awards from Excellence 2012: Barclays

With Barclays still the target of invective as a result of the Libor scandal, Euromoney outlines the reasoning behind bestowing the UK bank with multiple accolades for its performance over the past year – a period which supersedes the Libor probe.

Awards for Excellence 2012: Best Global Flow House

An ability to adapt while sustaining a market leading global flow business sets Barclays apart.

There have been some seismic shifts among investment banks active in the flow markets in the past year but not at the top, where Barclays, Deutsche Bank and JPMorgan dominate and should expect to capitalize further on rivals that are scaling down or exiting businesses entirely.

In a world where fixed-income, currencies and commodities sales and trading is becoming increasingly like cash equities, senior management of many of the investment banks outside of this top tier are being forced to decide whether they have the appetite or ability to run a full-scale all-in-one business servicing clients in all the product areas globally.

For Barclays, Deutsche Bank and JPMorgan, which provide institutional clients with this full-scale global capability, the question is not can they grow, but, by how much and in what direction.

Deutsche Bank and JPMorgan have been aggressively building their commodities trading businesses in recent years, while Barclays has sought to expand in cash equities and equity derivatives, and foreign exchange too.

While all three firms can claim success in each of these areas, in addition to sustaining their enviable market shares in rates, credit and FX, it is Barclays that stands out this year.

The UK investment bank has not only performed strongly in serving clients across the whole spectrum of rates, credit and FX, to commodities and equities, but more importantly is leading the advance of a development that could define the future of flow markets – over-the-counter clearing.

Guglielmo Sartori di Borgoricco, head of distribution at Barclays, says: "This is the natural evolution of that flow monster role, and an area that we believe is elemental to the flow market. Clearing will be the umbilical cord to the flow business in the future."

What investment banks and the broader finance industry are preparing for is that all standardized OTC derivative contracts must be traded on exchanges or electronic trading platforms and cleared through central counterparties by end-2012 at the latest.

This has ramifications for the OTC derivatives market, the investment banks and their investor clients too.

Arguably well ahead of others, Barclays has invested accordingly, and is capitalizing on its lead.

"What does it mean to be a flow monster? The liquidity provision is very important, the ability to deliver great content is important, and the clearing side is the completion of it all, because once you have it all – the front office, back office and pipes working together – then you have great liquidity, content and execution. That is precisely how Barclays is set up," says Sartori di Borgoricco.

He adds: "What our OTC clearing team is doing today is just as pioneering as the global netting agreement we took the lead on some eight years ago."

Ralph Segreti, head of FICC OTC clearing distribution for Europe and Asia, is equally bullish, arguing that growth in this area is expected to boom

He says: "Clearing is an area where our work with clients really comes together. We realized early on that clearing was absolutely elemental to the future of our platform and that it would help us strengthen the partnerships we have with our clients. So we had an early and deep commitment to OTC clearing, and it is one where we are starting to reap the benefits."

Segreti believes this business is set to grow substantially from clearing roughly $60 billion of trades a week currently.

He says: "We are only doing a fraction of the business we expect to do, but we have a very scalable solution in place and we are ready to facilitate the growth as it comes."

Time will tell if Barclays manages to up-scale this business to a size that generates healthy returns, but in the meantime the firm’s global flow sales and trading business will doubtless continue to perform strongly, and particularly in areas where it has most to gain.

In equities, for instance, Barclays now has an 8% market share of all US volume, and in Asia the firm has tripled its market share on the Tokyo Stock Exchange and increased its market share on the Hong Kong Stock Exchange.

Barclays – ranked third by market share in Euromoney’s 2011 FX survey – is also gaining ground on Deutsche Bank’s dominance in the global FX market.

Nick Howard, head of distribution for Europe, the Middle East and Africa, says: "We have been consistently building our FX business in all three regions. In the Americas it takes a couple of years to on-board some of the big accounts, but we have gained market share there, and that is partly a result of the tailwind effect from the Lehman acquisition. We’ve also invested heavily in technology, particularly around the FX forwards market." 

 

Awards for Excellence 2012: Best Global Debt House

Barclays has shown skill and strength in adversity to cement its place as the leader in DCM this year.

This year more than any other, success in DCM has required both breadth and depth. With markets as jumpy and unpredictable as they have been, the best global debt house must not only have excellent global reach, it must also be product, tenor and currency agnostic. This year that house is Barclays. Barclays and its shortlisted competitors dominate the DCM markets. But over the past 12 months the UK bank has been everywhere – among the top-three ranked underwriters across all FIG, SSA, US dollar, euro and sterling issuance. This focus on both domestic and cross-border business is underpinned by an enviable trading, distribution and research platform.

League-table strength is a given in this category, but a closer look at the business that Barclays has been writing gives an indication of the regard in which this team is held. In SSA, under the most challenging circumstances imaginable, the bank has excelled amid the storm. It is the number-one underwriter for EFSF and ESM issuance – quite a feat for an institution that is not even a eurozone bank. "There is no natural embedded advantage – we are thought of as a British bank not an indigenous eurozone bank," says Charlie Berman, head of public-sector EMEA at Barclays. "These issuers want this team working with them on the tough deals." The bank also underwrote the first benchmark issue for the Republic of Iceland since 2006. Its strength in volatile markets also saw it have 50% market share of corporate issuance in Europe in October 2011 – an extremely stressed time – and it has been instrumental in reopening peripheral markets in 2012. Deals such as those for Portugal’s Semapa and EDP required the kind of access to the domestic retail investor base that very few global banks have.

The past year has been a rollercoaster ride of risk-on, risk-off sentiment, so the ability to identify and exploit relevant and untapped investor bases is a crucial skill. Barclays demonstrated this in spades last year across FIG and corporate issuance. "Access is always about navigating windows, so you need to be with the bank that is in the flows," says Mark Geller, head of FIG syndicate in London. In its top-tier US franchise it dominated in yankee bank issuance and US dollar covered bonds – key themes of the past year as some banks’ euro liquidity evaporated. This strength was in evidence on the corporate side as well, with yankee deals for BHP Billiton, Teva, GlaxoSmithKline, Tesco and Pernod Ricard among many others. Barclays’ Asian and emerging market yankee business included the underwriting of deals for Honda, Toyota, Brasil Telecom, Ipic and KNOC.

The bank’s strength in cross-border liquidity was also demonstrated as sole arranger of the groundbreaking ¥50.7 billion ($636.2 billion) Tokyo Pro-bond for ING Bank in April. It was ING’s debut benchmark bond offering in Japan. "This was an exceptionally important opening of previously trapped domestic liquidity," says David Lyon, managing director IBD FIG EMEA. The theme of trapped liquidity was also addressed in the UK, with pioneering retail bond deals for National Grid and Tesco Bank. Barclays was also sole arranger for Lloyds Bank’s US retail notes programme, which enabled the bank to access US dollar funding away from the institutional market. "This was an important diversification for an entity like Lloyds," says Lyon. In emerging markets the bank had success in opening new funding currencies with deals such as the debut SFr500 million ($520 million) issue for VEB and the £650 million ($1 billion) deal for Russian Railways.

Barclays’ US franchise is the bellwether of the entire firm and its strength was firmly in evidence this year. Its $13.3 billion sole underwrite on the bridge loan for Kinder Morgan’s acquisition of El Paso was the largest sole underwrite ever for a non-investment-grade credit and was done at the same time that other European banks did not even have access to the dollar market. When SABMiller was looking to refinance the $12.5 billion acquisition loan backing its acquisition of Foster’s it mandated Barclays for the preparation of the US 144a/RegS documentation, as an active bookrunner and as a billing and delivery bank.

One sector where Barclays has traditionally not been as strong as its closest competition is high yield, but the bank has made progress this year. "The engine behind the high-yield product has been the strength of our global distribution platform," says Peder Oien, co-head of European leveraged finance. Barclays has increased its share of the US high-yield market from 4.4% in 2009 to 7.1% in 2011, and in Europe it has a 7.2% market share so far this year – up from 3.4% in 2009. "This has not been an easy market to be operating in," says Oien. "It requires a lot of coordination and a unique set of skills." The firm was on four of the five largest deals in the US over the past year – HCA, Sprint, CIT Group and Chrysler – and has brought 31 new issuers to the European market since 2010. "We have a pretty unique story," says Jim Glascott, head of global DCM at Barclays. "It has taken us a long time to get this franchise to where it is today."

 

Best Investment Bank and Risk Adviser in United States

But one investment bank has not only kept a clean sheet, it has also managed to make headway in all areas of investment banking. Barclays wins the award for this year’s best investment bank in the US and for best US risk adviser. In DCM, Barclays ranks third in the league tables. The bank excels in being product agnostic, having an integrated loan and bond and securitized offering, and is known for its attention to detail.

Barclays is a leader in covered bonds, leading a $5 billion covered bond for TD Bank over the period. In investment grade debt it has led the last six deals by GECC – more than any other bank. In esoteric ABS, the bank is the leader in the market, with deals for Miramax and Dominos. Together with Deutsche Bank it successfully bid for a portion of the Maiden Lane III legacy AIG assets that were auctioned by the Fed in April this year.

In ECM, Barclays ranks seventh in the league tables and has a way to go to bring itself up to competing with such stalwarts as Morgan Stanley and JPMorgan. But in equity flow and hedging for clients the bank is a leader. It has a high share of US flow products and jostles for first place in block trading with Deutsche Bank. The  bank advised Capital One when it needed $2 billion in equity to finance its acquisition of ING, suggesting instead an equity forward structure to de-risk the deal, showing its equity risk management capabilities to be top-tier.

In M&A, Barclays now ranks fourth in the league tables and last year was third for full-year 2011 – the only non-US bank to make that position in 12 years. Barclays was the sole underwriter of $13 billion of committed acquisition financing for the Kinder Morgan/El Paso transaction, the largest acquisition-related financing of the period and the largest ever sole underwriting to a non-investment-grade company. The bank was also financial adviser to Hewlett Packard in its subsequently troubled acquisition of Autonomy last August. It incorporated an FX hedge and a fully underwritten $8 billion bridge facility. Barclays is also a leader in the LBO M&A advisory sector.

The bank’s commitment to the US is exemplified by the addition of another global senior manager to the country – Tom Kalaris is now going to be splitting his time between New York and London as executive chairman of the Americas as well as overseeing wealth management. Jerry del Missier, who has overseen the corporate and investment bank through its Lehman integration and was recently appointed COO of the Barclays group, says the bank is well positioned. "We came out of the crisis in a stronger strategic position and that has allowed us to continue to win market share and build our franchise. Keep in mind that the US is the largest investment banking, wealth management, credit card and investment management market in the world, and in terms of fee share will remain the most dynamic economy in the world for many years. As a strong global, universal bank operating in a competitive environment that is undergoing significant retrenchment, we like our position."

 

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Thu, 07/05/2012 - 18:30 | 2590353 achmachat
achmachat's picture

Zerohedge; your prime comedy source on the webz.

Thu, 07/05/2012 - 18:40 | 2590376 flacon
flacon's picture

 

VIX In Oversold Position 07-05-2012

http://www.youtube.com/watch?v=QTJ-wgU4xWU

 

Time to bring out the UVXY.

 

Thu, 07/05/2012 - 19:21 | 2590485 LowProfile
LowProfile's picture

-1 for recommending a shitty issue that decays faster than an dead pig in the jungle.

And a bitchslap for thread hijacking.

 

IMO this ZH headline is currently #1 in the "Most Ironic Headline of the Year" award.

Thu, 07/05/2012 - 19:32 | 2590505 Joe Sixpack
Joe Sixpack's picture

It's the financial world's equivalent of the Academy Awards in the "Entertainment" industry- i.e., mental masturbation at best.

Thu, 07/05/2012 - 19:48 | 2590532 knukles
knukles's picture

Multiple choice:

 

a) Whoda thouight?
b) What could go wrong?
c)  Huh?
d) Are we talking about the same person?
e) You gotta be kiddin' me
f)  No shit, Sherlock
g) WTF?
h) What's this gotta do with the price of gold?
i)  Pay your own way
j)  Pull my finger
k) LOL
l)  All of the above
m) None of the above
n) Some of the above
o) Who the fuck cares anymore?
p) People really subscribe to magazines like that?
q) I know Bobby Diamond
r)  I knew Jack Kennedy
s) WIll it make me money
t) No

Fri, 07/06/2012 - 02:59 | 2591036 Skateboarder
Skateboarder's picture

"We came out of the crisis in a stronger strategic position and that has allowed us to continue to win market share and build our franchise. Keep in mind that the US is the largest investment banking, wealth management, credit card and investment management market in the world, and in terms of fee share will remain the most dynamic economy in the world for many years. As a strong global, universal bank operating in a competitive environment that is undergoing significant retrenchment, we like our position."

HORSE. SHIT. I nearly puked in my mouth reading that garbage. My skateboard would've gone straight to his dome if he said that shit in front of me.

Thu, 07/05/2012 - 18:41 | 2590379 dannyboy
dannyboy's picture

It would be far less halarious if ZH wasn't making this up. Paradoxically, I find it even funnier that this is serious.

Seriously, the onion couldn't have made this shit up if they tried.

Thu, 07/05/2012 - 19:33 | 2590507 Joe Sixpack
Joe Sixpack's picture

How about Barack Obama, recipient of the Nobel Peace Prize?

 

Good --> Bad

Bad --> Good

 

Got it?

Fri, 07/06/2012 - 02:44 | 2591027 piliage
piliage's picture

This just in, Euromoney names Anders Behring Breivik humanitarian of the year.

Thu, 07/05/2012 - 22:21 | 2590783 upWising
upWising's picture

The septic tank pumping enterprise in this area has a great tag line that is perfect for this magazine:

  "A Flush Always Beats a Full House."

Fri, 07/06/2012 - 01:59 | 2591005 Nobody For President
Nobody For President's picture

Ours is better:

"Full of political promises."

Fri, 07/06/2012 - 01:44 | 2590993 northwind
northwind's picture

you hit it. just reading the intro to the story made me spit my beer. this must be the twilight zone but I'm gonna keep trying to adjust the channel. BTW my dog just got name best investor of the year, managed to nudge the cat out of first place.

Thu, 07/05/2012 - 18:32 | 2590355 DoChenRollingBearing
DoChenRollingBearing's picture

Here you go, my take on LIBOR, what it is and what has happened to date.  I also discuss the new PIIGS scandal that just hit the wires...

 

It's OUR MONEY they're stealing, bitchez!

http://tinyurl.com/clafwu6

Thu, 07/05/2012 - 18:34 | 2590364 JohnG
JohnG's picture

Sickening.

Thu, 07/05/2012 - 18:47 | 2590392 El Oregonian
El Oregonian's picture

DON'T GO AND PICK UP THE AWARD! It's a trap!!! They have Iterpol Agents in the audience ready to pounce on you and arrest you if you do... On second thought, go ahead, you deserve it. Enjoy the (sur)PRIZE!

 

Thu, 07/05/2012 - 19:22 | 2590488 LowProfile
LowProfile's picture

I would pay $$$ to watch that on PPV.  Seriouz!

Thu, 07/05/2012 - 18:35 | 2590365 Piranhanoia
Piranhanoia's picture

Sounds like the microbrewery in Ireland that had just won best brew award,  and another company (the big one) came and claimed the trophy at the award ceremony.  The trophy had the actual winner's name on it.

Thu, 07/05/2012 - 18:36 | 2590366 wisefool
wisefool's picture

Bruce Jenner won the romney olymics. His step daughter deserves 2M in my porn collection.

Thu, 07/05/2012 - 18:37 | 2590367 Not Too Important
Not Too Important's picture

Hahahahahahahaha!!!

OK, Tyler, you stole this from The Onion. Oh, you didn't . . .

Thu, 07/05/2012 - 18:39 | 2590373 CPL
CPL's picture

Holy crap

Thu, 07/05/2012 - 18:39 | 2590374 Sid James
Sid James's picture

Absolutely feckin' hilarious.

Thu, 07/05/2012 - 18:41 | 2590380 Dr. Engali
Dr. Engali's picture

If I hadn't seen so much ridiculous bullshit in the past four years I'd say this story is a prank. But after Corzine nothing shocks me any more.

Thu, 07/05/2012 - 18:41 | 2590381 Rainman
Rainman's picture

I can just see the remaining Barc banksters jerking off in a men's room stall as they read their puff piece in this rag mag. They'll also order 10,000 copies for the muppets to read in every waiting room of every office.

Thu, 07/05/2012 - 18:43 | 2590383 Paul Atreides
Paul Atreides's picture

Bazinga!

Thu, 07/05/2012 - 18:50 | 2590385 Bunga Bunga
Bunga Bunga's picture

Never heard about Euromoney.

Yes Men?

But even the "Nobel" Prize in Economics has nothing to do with Alfred Nobel other than the abuse of the name.

Thu, 07/05/2012 - 18:48 | 2590398 EverythingFubar
EverythingFubar's picture

With apologies to William Shakespeare:

 

All the world's a stage,

And all the men and women merely players:

They have their exits and their entrances;

And one man in his time plays many parts,

But for the most part, we are now all muppets,

Fed news as pigswill by the media,

Yoked by debt and invisible strands we don't fully comprehend,

manipulated by the Elite,

for causes unknown to us

Thu, 07/05/2012 - 18:52 | 2590405 Animal Cracker
Animal Cracker's picture

WOW.  I would be less surprised to see Casey Anthony host Sesame Street.

Thu, 07/05/2012 - 19:03 | 2590437 wisefool
wisefool's picture

Erin burnet is on CNN right now.

Thu, 07/05/2012 - 19:53 | 2590548 knukles
knukles's picture

LOL

She should have sock puppets pop out of her bra for entertainment purposes.
Isn't her program about Giving Head or something like that?

CNN bosses... take that hint.
You CAN improve your ratings.
Even get moolah for the reruns.

(whimpering sounds)

 

Thu, 07/05/2012 - 19:03 | 2590432 CreativeDestructor
CreativeDestructor's picture

haha, its all made up for sure....

Thu, 07/05/2012 - 19:03 | 2590439 nasa
nasa's picture

We can end our search for the 2012 Fluffer of the year award winner...

Thu, 07/05/2012 - 19:30 | 2590465 NuYawkFrankie
NuYawkFrankie's picture

Probably find that Euromoney is Barclays in-house publication.

 

Then again, maybe not. I'm pretty sure that the Barclays in-house publication is in fact Euro'dMoney (Pronounced - Your'e Owed Money)

Thu, 07/05/2012 - 19:26 | 2590494 jonjon831983
jonjon831983's picture

Euromoney link not working!!!

Thu, 07/05/2012 - 19:34 | 2590509 YesWeKahn
YesWeKahn's picture

Best manipulator, and best liar.

Thu, 07/05/2012 - 20:03 | 2590571 The Fonz...befo...
The Fonz...before shark jump's picture

Rigging the ballot wouldn't be beneath theses guys

Thu, 07/05/2012 - 20:05 | 2590573 RichardENixon
RichardENixon's picture

As Jimmy Carter famously asked, "Why not the best?"

Thu, 07/05/2012 - 20:12 | 2590586 ATG
ATG's picture

FAS seems to be telegraphing a slightly different vote on banks and financials:

http://richcash8tradeblog.blogspot.com/

Thu, 07/05/2012 - 20:36 | 2590628 JustACitizen
JustACitizen's picture

Best Investment Bank? Wait - they still have those? Do they do a better job sucking the government tit than the others?

Any of you freakin' bankers out there ought to be f'ing ashamed of yourselves. Rat shit has a higher purpose than you do.

Thu, 07/05/2012 - 21:11 | 2590673 Never One Roach
Never One Roach's picture

Will they start awarding a Nobel Prize in Sodomology? 

Fri, 07/06/2012 - 02:38 | 2591024 Clashfan
Clashfan's picture

This Bloomberg reporter wants to be first on that list: http://www.dailymotion.com/video/xquxle_reporter-caught-off-guard-with-s...

Thu, 07/05/2012 - 21:38 | 2590719 WallowaMountainMan
WallowaMountainMan's picture

"Eurospidermantowelsascollateral"

i just could not get through the first two paragraphs. Absolute classic rip roarin zh at their best.

i'm jealous.

now, back to the rest of the article.

Fri, 07/06/2012 - 00:00 | 2590915 cbxer55
cbxer55's picture

Every week, my wife and I get at least three credit card offers for the BarclayCard. Are they serious? Have a credot card with the bank that has led at the LIBOR manipulation scandal?? Really??? Not this person! We have no credit cards, and will never ever have one with barclay on it.

WTF?

Fri, 07/06/2012 - 00:03 | 2590919 williambanzai7
williambanzai7's picture

Crime pays

Fri, 07/06/2012 - 01:06 | 2590974 Me_Myself_and_I
Me_Myself_and_I's picture

In the mid-2000's my models were showing that losses on loans were going to be extremely high.  The bank I worked for had models showing losses would be very, very small.  I pointed out time and again the error in their models (housing rising forever) and was told point blank to find another job.

The fact that EuroMoney rewards this kind of behavior is proof enough that nothing has changed.  The banks have control of the central bank and government minions who will create an endless succession of paper games to keep them in business.  Accountability and responsibility are only meted out in the most extreme cases, such as admitting to rigging LIBOR. 

But for the rest of us.. we are on the wrong end of the lever.  This is their fantasy world.  Unfortunately we have to live in it. 

Fri, 07/06/2012 - 01:44 | 2590992 hugovanderbubble
hugovanderbubble's picture

PROP AGANDA in UGANDA

Fri, 07/06/2012 - 02:31 | 2591018 orangegeek
orangegeek's picture

The euphoria before the collapse.

Fri, 07/06/2012 - 02:37 | 2591023 Clashfan
Clashfan's picture

Speaking of "You can't make this up" and awards, what does Bloomberg win for this?

http://www.dailymotion.com/video/xquxle_reporter-caught-off-guard-with-s...

Fri, 07/06/2012 - 02:48 | 2591029 Nobody For President
Nobody For President's picture

It gets better. I had a tiny, tiny suspision that TD was pulling our collective leg, but nope:

http://www.euromoney.com/Article/2860648/Euromoney-Awards-for-Excellence-2011.html

 

But the good part? You want to subscibe to this banker ass-kissing, dick-sucking rag it will only put you out 450 English pounds or $795 USD. 

I mean, can you think of any possible better use of $795?

I am totally boggled - Tyler is right, you cannot possibly make this shit up. What next, Jon Corozine for editor?

Do NOT follow this link or you will be banned from the site!