JP Morgan
A second time winner, JP Morgan continues to reap the benefits of the formation of its ‘risk stripe’ approach: the combination of origination, research, rating advisory, trading and product development. This process has been completed and strengthened by the merger of the Financial Institutions Structured Finance business with the FI Capital Markets Origination Group last year to provide a single source of advice on capital management strategies and alternatives.
The bank has clearly derived creative benefits from this structure – the judges highlighted the consistent strength of product and placement strategies. But David Marks, co-head of FIG [financial institutions group] debt capital markets and structured finance, says that, ultimately, inspiration must come from the client. “JP Morgan’s innovation comes from the clients themselves. It’s no good sticking a group of bright guys in a darkened room and waiting for the light bulb to come on. Innovative solutions are always a response to client challenges.”
JP Morgan also demonstrates an enviable geographic spread of business. This, too, is attributed to its organisational policies, says Mr Marks. “We have been fortunate in some ways, as JP Morgan’s policy of deliberate cross-pollination has extended core FIG skills from New York and London to areas such as Asia. This skill set, which has been highly applicable throughout the Asian crisis and to the challenges that Japanese institutions are currently facing, has enabled us to win mandates.”
An honourable citation should also be given for the FIG team’s tie-breaker poem, which lyrically demonstrated the breadth of JP Morgan’s business. While it made the judges laugh, it should be stressed, however, that rhyming couplets did not prove to be the deal breaker for awarding the FIG category.
