Lauded by end users for using innovation across all credit asset types, the firm made a big mark in the U.S. market and replaced Morgan Stanley as holder of the top honor. In structured credit, Deutsche Bank brought to market a variety of long/short collateralized debt obligations, such as State Street Global Advisors' Diogenes and Halcyon Asset Management's LSSU, which consisted of long positions in senior secured bank loans and short positions in corporate credit-default swaps. The deals, designed to exploit opportunities in spread movements, "remain a structural innovation that many other firms are just starting to explore," conceded one rival credit head.
Greg Lippmann, global head of asset-backed securities trading, and his desk have been integral in developing many of the now-standard trading plays that have transformed the traditionally long-only ABS market in the past year. Market participants also gave the nod to the house for being out in front on correlation trading.
In terms of flow, the firm boasts strong trading volumes across asset types, under the wing of Boaz Weinstein, head of global credit trading. Market makers said it is a driver of single-name and credit index liquidity. "There are few firms that have the book and models to handle the trades that Deutsche has done for its clients," reflected a U.S. rival.
* Goldman Sachs * JPMorgan
* Lehman Brothers * Morgan Stanley