Credit research poll 2004: Why you don’t have to be global
Results of Euromoney’s biggest ever credit research poll indicate that the development of relationships with continental European investors is crucial to success.
Liquidity poll: Revealing the best market makers
Why you don’t have to be global to succeed in Europe:
YOU WOULD THINK that the jobs of analysts sitting in banks’ credit research departments across Europe would have been a lot easier in 2003. There were occasional blow-ups, such as the Parmalat scandal, but overall last year’s market rally was astounding and investing in credit throughout the course of the year increasingly seemed like a one-way bet.
But analysts at the bank that has topped the most categories in Euromoney’s 2004 credit research poll say this isn’t the case. In this environment, picking the credits that will outperform is tricky, and as Rick Deutsch, head of European high-grade credit research at BNP Paribas, points out, investors can’t just chase yield either, as one poor credit decision could destroy a lot of running yield.