The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Goldman Sachs: Finding extra margin in ECM

The new criticism of Goldman is that it is too narrow a franchise, not that it trades against its clients. Monoline is the new proprietary. “Goldman had a great year in equities but it wasn’t an equities year,” says the head of commercial and investment banking at a large universal bank.

Wasn’t it? True the economics of secondary equity trading show that it’s tough to make money even in booming markets. But the stability in credit markets provided by central banks from the middle of 2012 and month after month of positive inflows into equity funds as investors worried about over-bought, low-yielding government bonds have been a boon to equity capital markets. A narrow franchise can be a good thing if it’s a strong franchise that’s well coordinated across regions.

"We have seen an increasing concentration of assets under management on the buy side," points out Alasdair Warren, head of European ECM at Goldman Sachs. "Globally, there are around 1,300 institutions that invest in European equities, but of these the 50 largest control around 50% of the AUM, and many of these are US-based global funds. With Europe looking ‘investable’ again and all manner of long-only and hedge fund investors looking to reweight into equities and out of money markets and bonds, the quantum of demand has been outstripping supply, creating a very positive dynamic in the primary equity market."


From a low point of just $200 billion raised in the second half of 2011, global equity capital market volume has been increasing in every subsequent six-month period.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree