Investment banks have seen a profitable first half in LatAm
with overall wallets swelling after a strong run in equity and
bond offerings, as well as steady transaction flow for M&A
and loans. But they are facing an increasingly uncertain
environment going into the rest of 2011 as risk aversion spikes
on worries about global growth and as fees shrink amid tougher
competition in places like Brazil.
Coping with Competition
Investment banks have seen a strong first half but face an uncertain year ahead as volatility and increased ompetition threatens to slow down the pace of business.
Brazil is starting to lose some of its luster among banks
that earlier rushed to establish beachheads in the
regions largest economy. Unsurprisingly, fees have shrunk
in that country as more and more institutions compete for the
same plain-vanilla business.
Having a presence in Brazil may be pivotal for growth
strategies, but both local and international banks are looking
at the larger pan-regional picture as well.
The Brazil profitability equation is changing,
says Facundo Vazquez, a managing director on Bank...
Already have an account?
Subscribe now for unlimited access to all current and archive news, data and market analysis.
Take a free two-week trial now for the latest news, data and market analysis.