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.

Bulls at Bear, prop trading elsewhere

Investment Banking

Bear Stearns is the investment-banking model to strive for. That, at least, is the opinion of David Hendler, banks and brokerage analyst at CreditSights: "Bear Stearns may be the new business model for success in the changed brokerage playing field."

The US investment bank is a big player in all the customer businesses which matter. It's a big underwriter of asset-backed securities, strong in credit and interest-rate instruments, and was the number one bank for the quarter in municipal-bond underwriting, helped in large part by underwriting $4.7 billion in tobacco-fund asset-backed deals for the states of New Jersey and California. It's doing a good job selling equity derivatives and trading convertibles, and even has done well in M&A, announcing a surge in completed M&A revenues.

But its core franchise driver is probably mortgage-backed securities, in which Bear is second only to UBS Warburg in the US. It's had another good quarter, driven by high volumes of mortgage refinancings, but also by a large appetite for the product from the banking industry. "There is an incredible bid for MBS product from the banking sector as it is one of the only ways banks can take advantage of the steep yield curve environment," says Hendler.

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