Copying and distributing are prohibited without permission of the publisher
Morgan Stanley wins synthetic finance survey
15 August 2011
Morgan Stanley won the Global Investor 2011 synthetic finance survey as respondents say use of these instruments is increasing
Read more:
Synthetic finance
non-cash prime brokers
Morgan Stanley
Deutsche Bank
Bank of America Merrill Lynch
Credit Suisse
Nomura
Barclays
Citi and JPMorgan
Morgan Stanley came out as the top provider of synthetic finance in this year’s Global Investor/isf annual synthetic survey.
Morgan Stanley’s performance was a considerable improvement on last year when it finished third in the overall unweighted table, with only one first place finish out of the then 13 service categories.
This year it won the majority of service category tables, but not all. Instead, there were areas where Bank of America Merrill Lynch retained the strong position it held last year. Deutsche Bank revealed its strength by winning the overall weighted table for the second year in a row.
To see the full results and analysis, click here for the latest issue of Global Investor/isf.
Synthetic use on the rise
The survey also demonstrated that investors’ use of synthetic finance, or non-cash prime brokers, on the rise with two thirds (67%) of respondents reporting the proportion of their business that is synthetic had increased over the past 12 months.
Respondent have increased the number of providers they use for synthetic finance – in the 2010 survey the single biggest answer (17%) was one provider, whereas this year the most common response was three providers – again at 17%. Nearly 11% of respondents used ten providers.
Apart from diversification to reduce counterparty exposure, other reasons cited for bringing on board a new provider were to achieve better market access, to benefit from market competition, the launch of a new fund or an increase in the size of an existing fund. Margin and fees were also high on the list.