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The right balance:
Equity derivatives businesses either flourished or foundered in 2020: flow trading volumes ballooned even as many exotics desks struggled. For continuing to grow a balanced and diversified business in this challenging environment, Credit Suisse is IFR’s Equity Derivatives House of the Year.
Go with the flow
Investors looking to reshuffle credit exposures in the wake of the pandemic spurred record trading volumes in the first half of 2020, presenting a golden opportunity for bank trading desks. For remaining a consistent and trusted trading partner for clients during this turbulent period, Credit Suisse is IFR’s Credit Derivatives House of the Year.
Getting connected
High degrees of electronification made currency markets well-prepared for pandemic-era trading, as banks that had invested heavily in technology were able to help clients navigate this turbulent period. For its robust e-trading capabilities and innovative work with clients, Deutsche Bank is IFR’s Foreign Exchange Derivatives House of the Year.
The Shanghai Star Market has been a shining success since its launch in 2019. Global investors and investment banks are paying close attention.
After a slump in international issuance in 2020, fresh thinking may be needed to restore the appeal of the Japanese yen as a global funding currency. Japanese banks should also make another effort to get local investors to fund lower-rated issuers.
Travel restrictions and social distancing as a result of the coronavirus crisis transformed investment banking in 2020, introducing a more efficient, more flexible way of working. Asia-Pacific was the first region to go into the crisis and in some ways is the furthest through it. As health concerns begin to ease, does the region’s experience suggest that changes will stick?
Despite the best efforts of the Trump administration and a less-than-supportive regulatory climate, the ESG financing market in the US still managed to move forward in 2020. US ESG financing lags behind much of the rest of the world (Europe in particular) but a greener administration in the US will add momentum to efforts to harness financial markets to address climate change and other social ills.
With increased attention on the ESG sector, the second-party opinion providers have come under greater scrutiny from regulators and the maturing of the sector should lead to greater transparency and harmonisation.
Covid-19 was a major distraction for everyone in 2020, including those in the midst of the huge task of transitioning Libor to a new set of risk-free rates. Nevertheless, at the end of December 2021, Libor as we know it – for all but some important US dollar benchmarks – will be no more.
