2010 Awards for excellence: Best Global risk management house
Experience in dealing with its own distressed assets turned a weakness into strength as Deutsche helped clients reduce risk and free up liquidity, while cultivating a new investor base.
Awards for Excellence 2010
|Best Global risk management house: Deutsche Bank|
|Also nominated: Barclays Capital and Société Générale|
Deutsche Bank continued to build on its risk management capabilities after setting up its global markets structuring team in 2008, a decision that formed a crucial part of the reordering of the bank’s global markets business in the wake of the financial crisis. After hiring Ram Nayak from Credit Suisse last year to head the group, it ramped up its efforts in 2009. Although markets were kinder to investors over the period, there was much work to do, including helping clients dispose of distressed assets and raising regulatory capital in an efficient manner for financial institutions. But what distinguished Deutsche Bank from some of its competitors was its ability to unlock hedging opportunities where they rarely existed beforehand.
With tighter capital constraints applied across all global markets platforms, effective risk management solutions usually required banks to find the other side of the trade because warehousing capacity was limited. By having to deal with its own distressed assets after 2008, some of which it redistributed in all formats to investors, Deutsche was in an advantageous position when it came to advice to its clients.