BNP Paribas Looks To Retool Prime Brokerage Unit

BNP Paribas is restructuring its prime brokerage unit, a business that has gained little traction since its inception three years ago, according to rivals and clients.

  • 28 Mar 2004
Email a colleague
Request a PDF

BNP Paribas is restructuring its prime brokerage unit, a business that has gained little traction since its inception three years ago, according to rivals and clients. The firm likely will try to carve out a niche playing to its strengths in structured products and derivatives, rather than trying to continue to compete in the full service prime brokerage market, according to officials familiar with the unit.

Edwina Frawley, spokeswoman at BNP, declined comment and Frédérique Barnier-Bouchet, global head of prime brokerage in Paris, did not respond to messages. Barnier-Bouchet, who has served some 25 years with the bank, is thought to be considering alternative opportunities both within the bank and externally.

One prime brokerage client said it will consider switching firms unless BNP puts its house in order in the coming months. "We've perceived that there's something going on," he said, referring to staff changes, such as the resignation of Justin Haque last month. Haque only joined BNP in July to cover sales to hedge funds. "We have not been notified by the bank of anything," said the client.

BNP's group has not made an impact in the notoriously competitive prime brokerage arena, said a hedge fund professional. "In this business, you have to be either a leader like Goldman Sachs or Morgan Stanley, or a niche player," a rival added. "BNP [Paribas] falls through the gap between those roles." Market officials pointed to Barclays Capital as an example of a prime brokerage shop that has successfully created a niche providing financing to funds.

BNP announced in December it is going to hive off its cash equity business into a separate entity with French broker Exane and this further weakened the bank's prime brokerage effort, according to one rival.

 

  • 28 Mar 2004

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 05 Dec 2016
1 JPMorgan 350,314.87 1563 8.64%
2 Citi 331,807.46 1234 8.18%
3 Bank of America Merrill Lynch 294,072.11 1065 7.25%
4 Barclays 288,574.83 960 7.12%
5 HSBC 246,960.17 1012 6.09%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 29 Nov 2016
1 JPMorgan 41,457.25 68 7.46%
2 HSBC 35,073.34 130 6.31%
3 BNP Paribas 33,854.75 157 6.09%
4 UniCredit 33,033.86 153 5.94%
5 ING 23,664.97 130 4.26%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 29 Nov 2016
1 JPMorgan 17,674.88 93 10.70%
2 Goldman Sachs 14,180.33 72 8.59%
3 Bank of America Merrill Lynch 11,109.11 48 6.73%
4 Morgan Stanley 10,679.86 56 6.47%
5 UBS 9,841.05 49 5.96%