Credit trading survey 2011: Results index
The Euromoney Credit survey is looking to become the most comprehensive quantitative and qualitative annual study available on the credit markets. The survey excludes a number of categories of market participant, which means that the total volume reported by the survey is not and is not intended to be an accurate reflection of total global credit activity. Euromoney aims to capture client price-taking activity only. However, given the geographical and participant-type spread represented by the survey, Euromoney believes that the survey provides an accurate proxy for trends in the major areas of activity polled and accurately discerns the relative performance of the banks ranked.
The 2011 survey covers volumes traded from April 2010 to April 2011 – i.e Q2 2010/Q3 2010/Q4 2010 and Q1 2011. All voting is carried out electronically via a secure, dedicated data collection website. Respondents can amend votes prior to the closing deadline.
Definitions
Euromoney splits out accounts and volumes by geography, institution type, currency and total account size. They are defined as follows:
Geography: The location of where the voter is physically located NOT the domicile or head office of the institution that the voter represents
Institution type: Bank non-market making/Hedge Fund & Private Equity/Insurance/Real money & Traditional asset managers
Currency: Euro/Dollar/Sterling/Yen
Total Account Size: The total amount traded by that institution over the survey period with all market making counterparties.
The survey falls into two major sections.
PART 1 – Quantitative
This section is concerned with quantitative measures of overall market activity and banks’ relative markets shares.
Overall ranking by market share: Respondents (Credit investors) were asked to give us their total trading volume by product and currency. They then gave us the percentages of their total volume transacted with their top banks in each product and currency bucket they selected. These volumes were then converted into US$ totals so they were uniform (based on the average annual exchange rate for calendar year 2010 since the trading volumes relate to calendar year 2010). These volumes were then totaled to produce the overall market share rankings.
There are the following restrictions/definitions:
1. Only secondary market trading volumes will be allowed in the survey. No primary market allocations will be included/accepted.
2.Responses which do not include an annual total volume number for the respondent organization cannot count towards any of the rankings in the survey, including qualitative rankings, and are discarded.
3. Captive votes and votes representing internal transaction flows are excluded in the survey. This includes votes cast by:
• Private banks that are part of banking groups with a market-making Credit business
• Internal bank treasuries
• Internal Credit and non-Credit trading desks
• Tax/Restructuring units
Additionally, votes are not included in the survey where:
• Credit service providers cast a vote for themselves.
• Euromoney does not receive confirmation from the respondent of their identity.
• An individual respondent submits more than one ballot and we cannot resolve the duplication.
• A respondents volume is duplicating that of a colleagues from the same institution
PART 2 – Qualitative
This section is concerned with qualitative rankings of various aspects of the Credit providers’ services.
In each category, for example – Pricing, the ranking is calculated as the arithmetic mean of all the voted ratings (from 1 -7 where 1= very poor 7 = excellent) given to a bank for that category, with any responses that vote 1 in every voted category or which vote 7 in every voted category excluded. To qualify in these categories, banks need to receive 5% of the total individual vote count in that category. Respondents who only respond with a volume figure for one bank in the counterparty section (i.e single-banked) will not have their ratings included in the qualitative rankings.
We received 473 votes in this inaugural year for the survey.
