Bulge-Brackets Continue to Dominate Comparative Analysis

Article excerpt

It is no surprise that the bulge-bracket firms continue to dominate Institutional Investor's global research league tables. Scale, deep pockets and resources are needed to produce these weighty tomes comparing companies and sectors across the world.

UBS Warburg takes the top prize this year, usurping Morgan Stanley, which dropped to third place.

The US house shares its accolade with fellow heavy hitters Credit Suisse First Boston and Goldman Sachs, while Merrill Lynch retains its number two seat.

Both UBS and CSFB are reaping the benefits of their respective acquisitions last year of Paine Webber and Donaldson, Lufkin & Jenrette, which ranked seventh on Institutional Investor's chart in 2000.

These US firms not only provided the Swiss brokers with a strong foothold in the American market, but helped extend their global reach.

For example, UBS, which moved up three places, added nine team positions while CSFB, which jumped four notches, gained 12 extra team members.

Tom Hill, global head of equity research at UBS Warburg, says: "We decided quite early on - about four years ago - to make an effort to produce genuinely global research. However, until a year ago, our US research effort was not that strong and we had gaps in our coverage.

"The acquisition of Paine Webber strengthened our product offering and this, combined with the structure we had put in place, has contributed to our rise in the league tables."

Not every newly-merged entity enjoyed success. JP Morgan, which was bought by Chase Securities, did not budge from its eighth slot.

Meanwhile, Lehman Brothers also stayed firmly entrenched in ninth place, while Citigroup and Deutsche Bank both slipped down one rung to sixth and seventh, respectively.

The bottom of the tables saw Fox-Pitt Kelton climbing one place to number 10, and new entrants HSBC and ABN Amro tying for 11th.

The rankings show that the creation, production and distribution of global research is not for the faint-hearted. …