By Ben Miller
Investment banking fees survey: Under pressure
Banks are earning about as much in fees as they were a year ago, with a burst of ECM activity compensating for a sharply slower M&A market. Much now depends on market stability in the months ahead
Volatile US Treasury markets and flagging regional economic
growth have thrown up fresh challenges in 2013 for Latin
America’s corporate borrowers.
But such pressure has so far this year failed to make a dent
in the earnings of the investment banks that service them: fees
are roughly flat on last year, thanks largely to the overall
resilience of the main business lines — even though
the sources of that revenue have changed.
Equity capital market activity picked up pace this year,
helping compensate for a slump in mergers and acquisitions. And
despite uncertainty over the direction of interest rates, debt
capital market revenue is down only slightly on last year,
tracking overall volume.
The fee pool for LatAm investment banking —
combining revenue from DCM, ECM, M&A and loans —
had reached $1.28 billion this year through September 6,
according to Dealogic data. This was up a hair...
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