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.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

Sell-side hit again

Investment bank research has taken a further battering with Schroders, the asset manager, criticizing the role of analysts in the new economy bubble.

Schroders says there are hardly ever any sell calls from sell-side analysts. It found that 67% of analysts thought their bank would be excluded from corporate finance deals by a company if they issued a sell recommendation on it.

Nick Anderson, head of pan-European research at Schroders, says that while banks have to declare in their research if the company covered is one of their clients, they do not have to declare if they are pitching for new business from that company.

Conflicts of interests could also exist on a smaller scale: SEC acting chairman Laura Unger says one in four analysts own shares in companies they cover.

Some banks have taken steps to stop this - CSFB and Merrill Lynch have barred analysts from owning stocks in companies they cover. HSBC is encouraging analysts to issue as many sell recommendations as buys.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to and analysis and receive expertly-curated updates direct to your inbox.


Already a user?

Login now


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