E.U. fixed income biz becoming concentrated

Monday, November 22, 2010 Stamford, CT USA — Following dramatic shifts in the competitive landscape during the global credit crisis, Barclays Capital, Deutsche Bank and J.P. Morgan together now account for nearly 40% of all European institutional fixed-income trading market share, according to new research from Greenwich Associates.

These three firms are the top 2010 Greenwich Share Leaders in European Fixed-Income Overall. Greenwich Associates identified these Share Leaders based on fixed-income trade volume allocations reported by the 1,089 institutions participating in its 2010 European Fixed-Income Investors Study.

Concentrated Market
The aggregate market share is controlled by Barclays Capital, Deutsche Bank and J.P. Morgan. This level of concentration can be attributed to shifts in trading practices by European institutions during the global credit crisis — during which time institutions concentrated trading volumes with sell-side firms viewed as having the strongest balance sheets — as well as past consolidation among European fixed-income dealers.

Institutions that have consolidated trading volume with these leading firms are not sacrificing in terms of quality. Barclays Capital, Deutsche Bank and J.P. Morgan are also the 2010 Greenwich Quality Leaders in European Fixed-Income Sales Quality, Research Quality and Trading Quality. Greenwich Quality Leaders are firms that have distinguished themselves by receiving quality ratings from institutional clients that exceed those awarded to competitors by a statistically significant margin.

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