Editor's letter

Interviewing institutions for awards is always a tough process, but it was especially difficult this year. It is no surprise that the quality of pitches was so high; it's simply indicative of a thriving market

Media reports surfaced last month stating that Credit Suisse had lost approximately $120 million in the third quarter from issuing reverse convertible notes (RCNs) on Korean stocks. The alleged loss equates to 13% of the Swiss bank's second-quarter revenues from equity trading, and as such is no small amount. The bank's press office, unsurprisingly, adopted a defensive stance, taking the 'no comment' route.

Let's put the episode in perspective, though. Credit Suisse may have lacked adequate risk management if the reports are to be believed, but the bank has also been a notable exponent of innovation in its structured products business. What's more, this isn't a 'debacle' as some commentators suggest. To me, that word, at least in this industry, will be forever associated with the precipice bonds scandal in the UK. And the word also suggests an event that results in serious ramifications.

Credit Suisse is certainly reported to have lost a considerable amount, but the episode does not suggest that structured products markets are inherently flawed. There are no suggestions that the bank misled investors or that it acted unscrupulously. Credit Suisse's results were due on November 2, after we went to press, so perhaps then we will find out if there was any truth in the media reports. One truth to remember, however, is that markets are operating as successfully as ever.

Which brings me to our awards. Interviewing institutions for awards is always a tough process, but it was made especially hard this year, thanks to you. In each category, we shortlisted several institutions and invited them to tell us why they thought they deserved to win. We also called their clients and our contacts to verify just how innovative the contenders were, and were suitably impressed by their tales of excellence and innovation.

I believe we made the right choice in each category, and I would like to thank all those institutions that took part. It comes as no surprise that the quality of pitches this year was even better than in 2005; it's simply indicative of a thriving market.