Deutsche Bank wins corporate derivatives rankings

Global announced M&A volume reached $4.06 trillion in 2006, an increase of 36% on 2005, according to London-based data provider Dealogic. These volumes appear to be contributing to greater innovation in corporate risk management, with sale and leaseback programmes, non-recourse financing and M&A derivatives becoming increasingly popular.

Michele Faissola, London-based global head of rates at Deutsche Bank, said business was booming. “Corporate clients have many more options to choose from in financing their growing ambitions,” he said.

Deutsche Bank finished first overall, with 13.8% of the vote in this year’s poll. The German dealer placed first in interest-rate swaps, interest-rate options, exotic interest-rate products, cross-currency swaps and exotic currency products.

Citi finished second overall, scooping 10.7% of the vote. The US bank placed first in currency forwards, options and forward-rate agreements.

Richard Moore, London-based head of fixed-income for Europe, the Middle East and Africa at Citi, also declared heightened M&A volumes were having a marked effect on dealers’ business. He said the relative cheapness of debt was forcing chief executives to think more strategically about leveraging their balance sheets, in the face of potential challenges from other firms and private equity.

Citi, and Barclays Capital, which finished third overall with 10.1% of the vote, collectively knocked JP Morgan out of the top three this year. But the US dealer still maintained its lead in the credit default swaps category, coming first with 22.4% of the vote. Elsewhere, UBS led in equities for the third year running, with 16.7% of the vote.

Comprehensive results of the rankings survey will be published in April’s edition of Risk.