The Global Investment Banking Industry Is Prepared For A Downturn Nov 06

Standard & Poors, November 2006

Abstract
In Standard & Poor's Ratings Services' opinion, global investment banks will continue to have strong credit quality, and we expect them to weather an industry downturn in stride, without major difficulties. The past three years in the global investment banking industry have been among the best in history. Both primary securities issuance and secondary trading, as well as merger and acquisition (M&A) advisory have experienced high transaction volumes brought about by economic recovery and high liquidity. The latter is due to an extended period of monetary looseness, particularly in the U.S. Additionally, because of the industry downturn of 2001-2002, companies in the industry have greatly improved their ability to manage costs. They have shed low-performing assets and refocused strategies to...

Companies mentioned in this report are:
- Deutsche Bank AG
- Merrill Lynch & Co. Inc.
- Bear Stearns Cos. LLC
- Lehman Brothers Holdings Inc.
- Morgan Stanley
- JPMorgan Chase & Co.
- Citigroup Inc.
- Credit Suisse Group AG
- The Goldman Sachs Group Inc.
- UBS AG

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.

- Deutsche Bank AG
- Merrill Lynch & Co. Inc.
- Bear Stearns Cos. LLC
- Lehman Brothers Holdings Inc.
- Morgan Stanley
- JPMorgan Chase & Co.
- Citigroup Inc.
- Credit Suisse Group AG
- The Goldman Sachs Group Inc.
- UBS AG

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