Wednesday, December 14, 2016 Stamford, CT USA — Although the gradual stabilization of European banks helped stem the flow of fixed-income trading business to U.S. rivals last year, the market’s post-crisis evolution is far from complete.  

As part of its annual research, Greenwich Associates interviewed 1,128 institutional investors for its 2016 European Fixed-Income Investors Study.  Study results show Barclays and J.P. Morgan are tied for the top spot in the list of 2016 Greenwich Associates Share Leaders in Overall European Fixed Income.  Citi came in third, followed by a tie between BNP Paribas and HSBC.  Barclays has built its position in part on its strength in Rates Products and is the Greenwich Leader in European Fixed Income – Rates, while J.P. Morgan takes the lead in European Fixed Income – Credit.  

J.P. Morgan is the 2016 Greenwich Quality Leader in Overall European Fixed-Income Credit Products. In Rates Products, that title is shared by Barclays, Citi and J.P. Morgan. Citi and J.P. Morgan are the 2016 Quality Leaders in European Fixed-Income Trading Quality.  J.P. Morgan is the sole winner in both Fixed-Income Sales and Research Quality. Greenwich Quality Leaders are dealers who received quality ratings from clients that top those awarded to competitors by a statistically significant margin.

Dealers on Different Trajectories
Several looming issues and events could trigger radical change ahead, including the implementation of mandated swaps clearing, the arrival of MiFID II research provisions and the continued search for new sources of liquidity that have been regulated out of the European market. 

“While the market is not changing as rapidly as it has in recent years, individual banks are on different trajectories based on the strategies they have chosen or have been forced to adopt,” says Greenwich Associates Managing Director Andrew Awad.