In This Article:
Germany-based Deutsche Bank plans to strengthen its fixed income trading business in the Americas as part of its investment banking expansion strategy.
Its investment bank co-head, Ram Nayak, has indicated a target of a 20% revenue increase in fixed income from 2023 to 2027 by focusing on what he calls "the hardest market in the world, which is the Americas."
Fixed income accounted for over 80% of Deutsche Bank's investment banking revenue in 2023, despite efforts to expand advisory services.
Since 2019, the bank's trading operations have recovered, with fixed income revenue increasing by 45% to €8bn ($8.28bn) between 2019 and 2023.
Nayak, who oversees the fixed income trading division, shared with the Financial Times that while the bank has already seen success in the Americas, he believes the region holds the most significant potential for growth.
Nayak said: "We fixed Asia and we're a top three player. We fixed Europe and we're a top three player. It's America where we're lagging."
Nayak aims to make Deutsche Bank one of the top five banks in the US, similar to its position in other regions.
Deutsche Bank has been restructuring its investment banking strategy since 2018.
To strengthen its fixed-income business, the bank has added over 600 people to its Americas team in the last three years, about half of them in senior roles. It plans to continue hiring selectively to support this growth.
In December last year, PP Group Holdings (UPP), a UK student accommodation provider, secured its first £110m ($126m) sustainability-linked loan from Deutsche Bank, linking borrowing costs to environmental goals.
"Deutsche Bank aims to boost fixed income trading in Americas" was originally created and published by Private Banker International, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.