Deutsche Bank
Deutsche Bank’s continued growth in 2003 was characterised by its embrace of a novel business model. Instead of seeing the credit derivatives business as primarily concerned with playing relative value between bonds, loans, and default swaps, Deutsche Bank believes in the emergence of a “credit neural network”. Drawing on expertise across all relevant fields, Deutsche’s integrated credit trading business has bridged dislocations between traditional and non-traditional credit markets including real estate, leasing, project finance and private equity. As a result, revenues were up more than 50% on top of an already strong franchise. It is the combination of broad-based transactional volume and innovation that appealed to the judges. “Our success over the past year in the credit markets is a result of continual product innovation and the leveraging of our strong global franchise. We have seen a doubling of volumes in our correlation business globally and have placed around $15bn of synthetic tranches,” says Rajeev Misra, global head of integrated credit trading at Deutsche Bank The credit default obligation (CDO) market has developed substantially with new products like CDOs of CDOs, high-yield synthetic CDOs and ABS single tranche CDOs. “The emerging market synthetic CDO that we did with Sydbank in May was a particular highlight,” says Mr Misra. Deutsche Bank is also a leading market-maker in the ever- increasing credit indices markets in the US and Europe, providing tranches of indices and options on indices to clients.
