The world of fixed-income investing has offered up more than enough reasons for investors to feel skittish. In the latter half of the last decade, credit markets began to change dramatically. First, trading volume surged as those markets, particularly in Europe and the U.S., were flooded with highly rated securitized products, which were often backed by subprime mortgages and other assets that turned out to be toxic. J.P. Morgan is No. 1 in European Credit Research
In the wake of Greece's near-default last spring and Ireland's request for financial rescue in November, plus ongoing fears about the creditworthiness of other countries with soaring deficits, demand for European fixed-income research has skyrocketed.
"Most clients see the world as incredibly risky given the size of fiscal deficits in Europe and the U.S.," observes John Normand, global head of foreign-exchange strategy at J.P. Morgan in London.
Which banks provide the guidance that money managers find most helpful as they seek to navigate these risks in search of investment rewards? No one does it better than J.P. Morgan, according to participants in Institutional Investor's 2011 All-Europe Fixed-Income Research Team survey. The firms wins 12 total positions, including seven teams that are ranked No. 1 in their respective sectors.
Duetsche Bank claims second place, with six positions; the German bank has five teams in first place. Barclays Capital and Morgan Stanley tie for third, with four positions each. The results reflec the opinions of nearly 3oo individuals at more than 200 institutions that globally manage an estimated $3.5 trillion in European fixed-income assets. - Source