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Deutsche Bank’s Q3 2024 Investment Banking revenue reached €401 million, reflecting a 24% year-over-year increase despite a 32% quarter-over-quarter decline. This marks the third consecutive quarter of double-digit YoY growth, driven by significant gains in equity underwriting (up 43%), advisory (up 32%), and debt underwriting (up 20%). The year-to-date total stands at €1.49 billion, surpassing the previous full-year revenue by 20%.

SCOOP on Bloomberg News : BNP Paribas Plans to Lift Investment Bank Bonuses by About 5% BNP Paribas is planning to raise bonuses for its investment bankers, with equity trading and debt capital markets likely to benefit the most after a strong year for their businesses. An increase of that size at the French lender would be less than the double-digit gains expected at the big Wall Street banks. Bank of America is seen raising variable compensation by around 10%, while traders at Morgan Stanley and J.P. Morgan are in line for even bigger gains. In Germany, Deutsche Bank is planning to lift variable compensation by about 10% in the investment bank, Bloomberg has reported. The expected bonus gain at BNP Paribas’ investment bank is an average and changes for units will vary. Individual bonuses would only be communicated at the end of February. Chief Executive Officer Jean-Laurent Bonnafé made equities trading a priority in recent years, beefing up the unit by taking over businesses and client relationships that rivals including Deutsche Bank and Credit Suisse were shedding. Co-production with Sonia Sirletti ! All the details to read here :

For professional investors only. Investments involve risk. “Covered bonds are in an excellent position in the months ahead, whether the landing is a soft one or not,” says Henrik Stille, Manager of Nordea’s European Covered Bond Strategies. Read more about this interesting investment opportunity in his latest article. #EuropeanCoveredBonds #NordeaAssetManagement #advertisingmaterial

As I was reviewing recent projections on Investment banking, one number caught my attention: $316 billion. That’s the global revenue investment banking is expected to hit by 2025—a 5.7% increase from 2024. It’s not just the scale that’s impressive, but the drivers behind it, particularly in trading and M&A. 𝐓𝐫𝐚𝐝𝐢𝐧𝐠 𝐑𝐞𝐦𝐚𝐢𝐧𝐬 𝐭𝐡𝐞 𝐏𝐨𝐰𝐞𝐫𝐡𝐨𝐮𝐬𝐞 Securities trading continues to dominate revenues, expected to reach $220 billion in 2025. Within this space, credit and emerging markets trading are set to grow by 6%, driven by increased investor interest and market liquidity. Debt sales are also making headlines, likely hitting a record $49 billion. However, not all sectors are surging—interest rate-related trading could see a 3.5% dip, reflecting broader economic shifts. 𝐌&𝐀 𝐈𝐬 𝐚 𝐑𝐞𝐧𝐚𝐢𝐬𝐬𝐚𝐧𝐜𝐞 𝐨𝐟 𝐃𝐞𝐚𝐥-𝐌𝐚𝐤𝐢𝐧𝐠 M&A volumes are forecasted to rise another 10% in 2025, following a 13% increase in 2024. Private equity and corporate deals have already grown 17% year-to-date through September 2024. With M&A fees expected to generate $27.6 billion, 2025 could be one of the most lucrative years for dealmakers in recent history. 𝐓𝐡𝐞 𝐅𝐨𝐫𝐜𝐞𝐬 𝐁𝐞𝐡𝐢𝐧𝐝 𝐭𝐡𝐞 𝐍𝐮𝐦𝐛𝐞𝐫𝐬 → 𝐏𝐨𝐥𝐢𝐜𝐲 𝐒𝐮𝐩𝐩𝐨𝐫𝐭 Pro-business policies are expected to boost deal approvals, particularly cross-border transactions and European investments. Deals previously blocked due to competition concerns may finally see the green light. → 𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐒𝐭𝐫𝐞𝐧𝐠𝐭𝐡 Corporate balance sheets remain resilient despite rising capital costs. Key sectors like healthcare, technology, and energy are witnessing pent-up demand, fueling activity across the board. 𝐖𝐡𝐚𝐭 𝐓𝐡𝐢𝐬 𝐆𝐫𝐨𝐰𝐭𝐡 𝐒𝐢𝐠𝐧𝐚𝐥𝐬? These projections are more than just numbers—they highlight a resilient and adaptive industry ready to capitalize on emerging opportunities. Investment banks are positioned not just to grow but to lead in a shifting global landscape. How are you preparing for this new era of investment banking? #banking #investbanking #capitalmarket #finance

Institutional global investors have been ramping up activity in the booming private credit market. The asset class is set to grow to $2.6 trillion by 2029 from $1.5 trillion at the end of 2023, according to Preqin data. - Reuters

Interesting article from the Financial Times. In brief, the Private Equity industry is under pressure: "investors - which typically include large sovereign wealth funds, pension funds and endowments - are asking for their money back before they make further investments", says Ortenca Aliaj, FT's Banking Editor. Inflation and higher interest rates are influencing deal-making and fundraising activities and, according to regulators, "adding debt" to an (already) highly leveraged portfolio "may pose a risk to the broader financial system". In this context, PE firms should not only adapt their strategies - including a focus on operational improvements in portfolio companies and exploring new sectors and geographies for investment opportunities - but also revisit the operating and transfer pricing models of their portfolio companies. Despite the economic challenges, operating model optimization and transfer pricing strategies can effectively increase the value of PE firms' portfolio companies. In fact, this "blind spot" plays a crucial role in optimizing performance and ensuring sustainable growth in the Private Equity industry. https://lnkd.in/dpCURbtv

As we start Q4 2024, the investment banking sector is gearing up for a remarkable resurgence, with expectations of a 30% increase in advisory and underwriting revenues. This growth is fueled by a revival in M&A and capital market activities, aided by a favorable economic environment and anticipated interest rate reductions. The article from S&P Global Market Intelligence dives into the factors driving this trend and the promising outlook for private equity deals. #InvestmentBanking #MergersAndAcquisitions #CapitalMarkets #PrivateEquity #FinancialServices https://lnkd.in/e_ybNUB4

Despite a second-quarter retreat, global investment banking revenues were up in the first half, boosted by debt underwriting and merger-and-acquisition (M&A) advisory fees, according to LSEG Data & Analytics. Global investment banking fees were up 7% to US$57.7 billion in the first six months of 2024, the firm reported. In the second quarter, however, fees were down by 6% from the first three months of the year. https://lnkd.in/gdTEpRUF

“A group of companies that might be asset rich but cashflow restrained, or require pre-IPO or single stock-based financing - things that banks traditionally find it harder to lend to, that is where private credit comes in.” — Clifford Lee, DBS Bank Global Head of Investment Banking on FinanceAsia https://lnkd.in/gHgep6gQ Securitize provides a platform for qualified investors looking to enter the private credit space through Hamilton Lane’s Senior Credit Opportunities Fund (SCOPE) — an evergreen fund with added liquidity potential through on-demand redemptions. Learn more: https://lnkd.in/e76X6Qf3